Does the Beem Light Sauna Development Agreement grant the right to use the Marks or the System?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. You desire to open and operate a Studio using the Marks and the System, and we are willing to grant to you a license to open and operate a Studio on the terms and conditions of this Agreement.
- NOW, THEREFORE, for and in consideration of the foregoing promises and the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
Section 1 Rights Granted.
- 1.1 Grant of Franchise.
Upon the terms and conditions of this Agreement, we grant to you a non-exclusive license (the "License") to operate one Studio using the Marks and the System.
The Studio will be located at a site to be mutually agreed upon subsequent to the execution of this Agreement, pursuant to Section 4.1 (Site Selection) (the "Site"), within the area set forth in Appendix A (the "Site Selection Area").
You have no right to (i) sublicense the Marks or the System to any other person or Entity, (ii) use the Marks or the System at any location other than the Site, or (iii) to use the Marks or the System in any wholesale, e-commerce, or other channel of distribution besides the operation of the Studio at the Site.
- 1.2 Acceptance of License.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Franchise Agreement does grant the franchisee a non-exclusive license to operate a single studio using the Marks and the System. Specifically, Beem Light Sauna grants this license under the terms and conditions outlined in the agreement. This license allows the franchisee to operate a studio at a mutually agreed-upon site within a designated area.
However, this license is not without limitations. The franchisee does not have the right to sublicense the Marks or the System to anyone else. They are restricted to using the Marks and the System solely at the approved site. Furthermore, the franchisee cannot use the Marks or the System in any wholesale, e-commerce, or other distribution channels outside of the physical studio location.
The agreement also specifies that the franchisee's right to use the Marks and Trade Dress is limited to the studio and its related advertising. Beem Light Sauna designates which Marks and Trade Dress the franchisee can use, and the franchisee must adhere to the franchisor's written rules. The franchisee cannot use any Mark as part of their business name, with modifications, for unauthorized services or products, or in any online context without prior consent. All materials displaying the Marks or Trade Dress require Beem Light Sauna's prior written approval, which can be revoked with notice. The franchisee must display the Marks as specified by Beem Light Sauna on signage and various materials.