Where in the Beem Light Sauna Development Agreement can I find the definition of 'non-curable defaults'?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| 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 'non-curable defaults' within the Development Agreement can be found in Section 6.1. Non-curable defaults are specific violations of the Development Agreement that Beem Light Sauna deems so severe that they cannot be remedied or 'cured' by the franchisee.
These non-curable defaults include scenarios such as failing to timely execute a Franchise Agreement, failing to open the required number of studios by the deadlines outlined in the Development Schedule, or breaching any Franchise Agreement or other agreement with Beem Light Sauna or its affiliates. Even if Beem Light Sauna doesn't terminate an agreement due to a breach, the right to terminate still counts as a non-curable default under the Development Agreement.
Additionally, any failure to comply with any other provision in the Development Agreement also constitutes a non-curable default. This means that franchisees must adhere strictly to all terms and conditions outlined in the Development Agreement to avoid potential termination and loss of development rights. Understanding these non-curable defaults is crucial for prospective Beem Light Sauna franchisees, as they represent significant risks that could lead to the termination of their Development Agreement.