Does the Beem Light Sauna Development Agreement specify any cure periods for 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 outlines specific conditions for termination with cause. However, unlike the Franchise Agreement, the Development Agreement itself does not explicitly define cure periods for defaults. The table indicates under the provision "Cause' defined – curable defaults" that it is "Not applicable."
Instead, the Development Agreement specifies certain non-curable defaults that can lead to termination. These include failing to execute a Franchise Agreement in a timely manner, 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.
This distinction is important for prospective Beem Light Sauna development franchisees. While the Franchise Agreement provides opportunities to correct certain defaults, the Development Agreement appears to have stricter terms, with certain failures resulting in immediate termination of the agreement and loss of development rights.