What is the definition of the 'Expiration Date' for the Beem Light Sauna Development Agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless this Agreement is terminated sooner as provided in other sections of this Agreement, this Agreement expires at midnight on the earlier of (i) the last Opening Deadline date listed on the Development Schedule, or (ii) the opening of the last Studio to be developed pursuant to the Development Schedule (the "Expiration Date"). Upon the expiration or termination of this Agreement, we and our Affiliates have the right, without any restrictions whatsoever, to: (a) develop and operate, and license third parties to develop and operate, Studios having their physical locations within the Development Area, subject only to your (or an Affiliated Entity's) rights within a Territory under a Franchise Agreement with us then in effect; and (b) continue to engage in any other activities that we (and our Affiliates) desire within and throughout the Development Area.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Expiration Date for the Development Agreement is defined as the earlier of two conditions. First, it is the last Opening Deadline date listed on the Development Schedule. Second, it is the date of the opening of the last Studio to be developed according to the Development Schedule. The agreement terminates at midnight on whichever of these two dates comes first.
Upon the expiration or termination of the Development Agreement, Beem Light Sauna and its affiliates gain the right to develop and operate Studios within the Development Area without restrictions. They can also license third parties to do the same, only subject to the franchisee's rights within a Territory under a Franchise Agreement then in effect. Beem Light Sauna and its affiliates can also continue any other activities they desire within the Development Area.
This means that a prospective Beem Light Sauna developer must adhere to the deadlines outlined in the Development Schedule to maintain their rights. Failing to meet these deadlines could result in the termination of the agreement and the loss of the exclusive development rights for the area. The franchisee should carefully review the Development Schedule and understand the implications of missing any deadlines.