Can Beem Light Sauna decide not to complete the purchase of assets after the purchase price is determined?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna has the option to not complete the purchase of a franchisee's assets even after the purchase price has been determined. Specifically, after the fair market value of the assets is established, Beem Light Sauna retains the right to decide against finalizing the purchase. This clause appears within the context of Beem Light Sauna's right to purchase studio assets upon termination or expiration of the franchise agreement.

This provision offers Beem Light Sauna significant flexibility in managing its network of studios. If the determined purchase price is higher than Beem Light Sauna deems acceptable, or if their strategic priorities shift, they can opt out of the purchase. This could leave the franchisee in a challenging situation, as they may have been relying on the sale of these assets after the termination of the franchise agreement. The franchisee would then need to find alternative buyers for the assets, potentially at a less favorable price.

For a prospective Beem Light Sauna franchisee, this clause highlights the importance of understanding the potential financial implications of the franchise agreement's termination. It would be prudent to assess the marketability of the studio's assets independently and to consider negotiating terms that provide some protection in the event Beem Light Sauna decides not to proceed with the purchase. A franchisee might also want to explore options for continuing the business independently, should Beem Light Sauna decline to buy the assets.

It is also important to note that the purchase price is based on the fair market value for use in a non-franchised competitive business, excluding any value associated with the Beem Light Sauna brand or intellectual property. This valuation method could result in a lower purchase price than if the business were valued as an ongoing Beem Light Sauna franchise. Franchisees should seek legal and financial advice to fully understand the implications of this clause and to protect their interests.