For Beem Light Sauna disputes, what is the mandatory pre-litigation requirement before filing a proceeding?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
each any provisions of this Section 15, we are entitled to injunctive relief (including the remedy of specific performance) in addition to any other remedies available at law or in equity.
- 15.13 Covenant of Further Assurances. You must execute any legal document or termination agreement that we prescribe to effectuate the termination of this Agreement and shall furnish to us, within 30 days after the effective date of termination, written evidence satisfactory to us of your compliance with all of the foregoing obligations.
Section 16 Dispute Resolution and Governing Law.
- 16.1 Governing Law. All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Except to the extent governed by the Federal Arbitration Act or other federal law, this Agreement will be governed by, construed, and enforced in accordance with the laws of the State of Delaware, without regard to its conflict of laws principles, except that any state law (a) regulating the sale of franchises, licenses, or business opportunities, (b) governing the relationship of a franchisor and its franchisee, or (c) involving unfair or deceptive acts or practices will not apply unless its jurisdictional requirements are met independently without reference to this Section.
- 16.2 Mandatory Pre-Litigation Mediation. Except as otherwise provided in this Section, prior to filing any proceeding to resolve any dispute based upon, arising out of, or in any way connected with this Agreement, a party must submit the dispute for mediation.
- (a) Conduct of Mediation. All parties must attend and participate in the mediation. It is the intent of the parties that mediation shall be held not later than 14 days after a
written request for mediation shall have been served on the other parties. The mediation will be held before one mediator selected by the parties, and if the parties cannot agree upon the mediator, then a mediator selected by the American Arbitration Association ("AAA"). The mediation shall not last more than one day and shall be held in the metropolitan area of our thencurrent principal place of business. The mediation shall be governed by the rules of the AAA.
- (b) Post-Mediation. If we and you do not resolve our dispute, then thereafter any party may file for litigation or arbitration, as applicable in accordance with the terms of this Agreement.
- (c) Exceptions to Mediation.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, before a franchisee can file a proceeding to resolve a dispute related to the Franchise Agreement, they must first submit the dispute for mediation. All parties involved are required to attend and participate in the mediation.
The FDD specifies that the mediation should occur no later than 14 days after a written request for mediation is served to the other parties. The mediation will be conducted by one mediator selected by the parties. If the parties cannot agree on a mediator, the American Arbitration Association (AAA) will select one. The mediation is limited to a single day and will be held in the metropolitan area of Beem Light Sauna's principal place of business at that time. The rules of the AAA will govern the mediation process.
However, there are exceptions to this mediation requirement. Disputes arising under or related to the Lanham Act, disputes related to the ownership or validity of intellectual property, disputes involving the enforcement of Beem Light Sauna's 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 mandatory pre-litigation mediation unless Beem Light Sauna consents to it.