factual

What is a 'Destruction Event' in the context of a Beem Light Sauna franchise?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

If a Studio is destroyed or damaged by any cause beyond your control such that it may no longer continue to be open for the operation of business, you must immediately give us notice of such destruction or damage ("Destruction Event").

You must diligently work to repair and restore the Studio to our approved plans and specifications as soon as possible at the same location or at a substitute site accepted by us within the Development Area.

If a Studio is closed due to a Destruction Event, the business will continue to be deemed a "Studio in operation" for the purpose of this Agreement for up to 180 days after the Destruction Event occurs.

If a Studio (i) is closed in a manner other than those described in this Section 3.2(e) or as otherwise agreed by us in writing or (ii) fails to reopen within 180 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies).Development Area.

Source: Item 23 — RECEIPT (FDD pages 71–230)

What This Means (2025 FDD)

According to the 2025 Beem Light Sauna Franchise Disclosure Document, a 'Destruction Event' occurs when a studio is destroyed or damaged by any cause beyond the franchisee's control, preventing it from continuing business operations. The franchisee must promptly notify Beem Light Sauna of such an event.

Following a Destruction Event, the franchisee is obligated to diligently repair and restore the studio to the franchisor's approved plans and specifications. This restoration should occur as quickly as possible, either at the original location or at a substitute site that Beem Light Sauna accepts within the Development Area.

For up to 180 days after a Destruction Event, the Beem Light Sauna business will still be considered a 'Studio in operation' under the Franchise Agreement. However, if the studio remains closed for longer than 180 days after the Destruction Event, or if it closes for reasons not covered in this section or without Beem Light Sauna's written agreement, the franchisor may exercise its rights and remedies as outlined in Section 6.2 of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.