Where must disputes excepted from arbitration be filed for Beem Light Sauna in California?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended; (ii) disputes that otherwise relate to the ownership or validity of any of the Intellectual Property; (iii) disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information; or (iv) disputes related to the payment of sums you owe us or our affiliates.
Any litigation under this subsection will be filed exclusively in the United States District Court for the district in which we have our principal place of business at the time of filing (or, if federal jurisdiction cannot be obtained, the state court in which we have our principal place of business at the time of filing), and you irrevocably consent to these courts' jurisdiction over you.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, certain disputes are excepted from mandatory arbitration. Specifically, disputes arising under the Lanham Act, those related to the ownership or validity of Beem Light Sauna's intellectual property, disputes involving the enforcement of intellectual property rights or protection of proprietary information, and disputes related to the payment of sums owed to Beem Light Sauna or its affiliates are not subject to arbitration unless Beem Light Sauna consents to it.
For any litigation arising from these excepted disputes, the FDD specifies the exclusive venue. Such litigation must be filed in the United States District Court for the district in which Beem Light Sauna has its principal place of business at the time of filing. If federal jurisdiction cannot be obtained, the litigation must be filed in the state court where Beem Light Sauna's principal place of business is located at the time of filing.
The document also states that franchisees irrevocably consent to the jurisdiction of these courts. As of the date of the FDD, Beem Light Sauna's principal place of business is located at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. This means that any franchisee entering into an agreement with Beem Light Sauna consents to having certain legal disputes resolved in either the U.S. District Court or the state court located in Newport Beach, California.