Does the Beem Light Sauna Development Agreement define 'curable defaults'?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| e. | Termination by us without cause | Not applicable | Not applicable. |
| f. | Termination by us with cause | Section 6.1 | We have the right to terminate Development Agreement if you commit one of several violations. |
| g. | "Cause" defined – curable defaults | None | Not applicable. |
| h. | "Cause" defined – non curable defaults | Section 6.1 | Non-curable defaults include you (or your Affiliated Entities) fail to timely execute a Franchise Agreement; you (or your Affiliated Entities) fail to have open and operating the required number of Studios specified in the Development Schedule at any deadline; you, your Owners, or your affiliates breach or commit a default under any Franchise Agreement or other agreement with us or our affiliates, and we or our affiliates terminate that agreement or have the right to terminate that agreement, even if we do not exercise that right; or you, your Owners, or your affiliates breach or otherwise fail to comply with any other provision in the Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Development Agreement does not explicitly define 'curable defaults.' However, the document does address termination by Beem Light Sauna with cause. The summary table in Item 17 indicates that the Development Agreement does not have a section that defines 'cause' in terms of curable defaults.
Item 17 does specify 'cause' related to non-curable defaults within Section 6.1 of the Development Agreement. These non-curable defaults include failing to execute a Franchise Agreement timely, failing to have the required number of studios open and operating by specified deadlines, breaching any agreement with Beem Light Sauna or its affiliates, or failing to comply with any other provision in the Development Agreement.
Since the Development Agreement does not define 'curable defaults,' prospective Beem Light Sauna developers should seek clarification from the franchisor regarding what constitutes a curable default under the Development Agreement and what the cure period would be. Understanding the distinction between curable and non-curable defaults is crucial for a franchisee to protect their investment and avoid potential termination of the agreement.