What is the dependency between site acceptance and territory definition for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule 1 to Appendix A of the Franchise Agreement Franchisee-Specific Terms
(to be completed after site selection and acceptance)
- 1. Site (Section 4.1):
- 2. Territory (Section 4.2): The Territory, if any, will be specified by us by written notice to you after the Site has been selected and will be an area that we specify surrounding the Site.
Once the Site has been accepted, we will identify your Territory in Schedule 1 to Appendix A based on the factors that we deem relevant, in our sole discretion, which might include demographics, the character and location of the Site, and nearby businesses and residences.
Once we have defined the Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Territory.
You must return to us upon our request a signed copy of Schedule 1 to Appendix A acknowledging the Territory we have designated.
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, the definition of a franchisee's territory is dependent on the acceptance of the site. Specifically, Beem Light Sauna will define the territory in Schedule 1 to Appendix A of the Franchise Agreement after the site has been accepted. This territory definition is based on factors that Beem Light Sauna deems relevant, such as demographics, the site's character and location, and nearby businesses and residences. The franchisee must also acknowledge the designated territory by returning a signed copy of Schedule 1 to Appendix A upon request.
Prior to site selection, the franchisee does not have any territorial protection within their Site Selection Area. The grant of territorial protection only occurs after Beem Light Sauna identifies the Territory. This means that until the site is accepted and the territory is defined, Beem Light Sauna and its affiliates retain the right to conduct business activities, including establishing other studios or businesses, even within the franchisee's Site Selection Area.
Beem Light Sauna also retains the right to establish or license studios at Non-Traditional Locations, such as gyms, hotels, and transportation facilities, both inside and outside the defined territory. Furthermore, Beem Light Sauna and its affiliates can operate businesses offering similar services under different names and marks, even within the franchisee's territory. This highlights that the territorial protection offered to Beem Light Sauna franchisees is limited and subject to specific exceptions.
Prospective franchisees should carefully consider these limitations and understand that the acceptance of a site is a critical step that triggers the definition of their protected territory. They should also be aware of the various exceptions that allow Beem Light Sauna to operate or license other businesses in the vicinity, even after a territory has been defined.