How does Beem Light Sauna define the Territory for a franchise location?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Limited Territorial Protection.
Once you have selected and we have accepted a Site in the Site Selection Area in accordance with Section 4.1 (Site Selection), we will designate an area within the confines of the Site Selection Area as your protected territory (the "Territory").
You do not have any territorial protection in your Site Selection Area, unless and until we identify your Territory, as explained in Section 4.2 (Definition of the Territory).
Except as provided in this Section 1.3 and for Non-Traditional Locations (as defined below), we and our Affiliates will not open, or license a third party to open, a Studio within your Territory.
Except for the foregoing sentence, we and our Affiliates have the right to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Studio.
For example, without limitation, we and our Affiliates have the right to:
- (a) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory.
A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multiunit residential properties, and other similar captive market locations;
- (b) establish or license franchises and/or company-owned studios or businesses offering similar or identical products, services, Sessions, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee's territory is established after the franchisee selects a site within a designated Site Selection Area, and Beem Light Sauna accepts that site. Once this occurs, Beem Light Sauna will define an area within the Site Selection Area as the franchisee's protected territory, referred to as the "Territory".
Beem Light Sauna emphasizes that franchisees do not have territorial protection within their Site Selection Area until Beem Light Sauna formally identifies the Territory. Once the Territory is defined, Beem Light Sauna and its affiliates agree not to open or license third parties to open a Studio within that Territory. However, this territorial protection is subject to exceptions, particularly for Non-Traditional Locations.
Beem Light Sauna retains the right to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's Studio or its potential impact. This includes establishing or licensing Studios at Non-Traditional Locations, such as gyms, cruise ships, military bases, college campuses, airports, hotels, theme parks, and other similar venues, even within a franchisee's Territory. Furthermore, Beem Light Sauna can establish or license franchises offering similar services under different names or marks both inside and outside the Territory, impacting the franchisee's potential market.