Where in the Beem Light Sauna Development Agreement can I find the definition of 'cause' for termination?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| f. | Termination by us with cause | Section 6.1 | We have the right to terminate Development Agreement if you commit one of several violations. |
| 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 definition of "cause" for termination in the Development Agreement can be found in Section 6.1. Specifically, this section outlines non-curable defaults that can lead to termination.
These non-curable defaults include failing to timely execute a Franchise Agreement, failing to have the required number of studios open and operating by specified deadlines in the Development Schedule, breaching any Franchise Agreement or other agreement with Beem Light Sauna or its affiliates (even if Beem Light Sauna doesn't exercise its right to terminate), or failing to comply with any other provision in the Development Agreement.
It is important for a prospective Beem Light Sauna franchisee to carefully review Section 6.1 of the Development Agreement to fully understand the circumstances under which Beem Light Sauna can terminate the agreement for cause. Understanding these conditions is crucial for maintaining a good standing with the franchisor and avoiding potential termination.