Are disputes related to the payment of sums owed to Beem Light Sauna subject to arbitration?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Excepted Disputes.
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, disputes regarding the payment of sums owed to Beem Light Sauna or its affiliates are not subject to arbitration, unless Beem Light Sauna consents to resolve them through arbitration. This means that Beem Light Sauna retains the right to pursue legal action in court to recover any outstanding payments from a franchisee, rather than being required to go through arbitration.
Specifically, Beem Light Sauna can file any litigation in the United States District Court for the district in which they have their principal place of business or, if federal jurisdiction is not possible, in the state court where their principal place of business is located. The franchisee consents to the jurisdiction of these courts. This clause ensures that Beem Light Sauna has a direct legal recourse for collecting payments, potentially expediting the recovery process.
This is a significant point for prospective franchisees to consider. While arbitration is often seen as a quicker and less expensive alternative to litigation, Beem Light Sauna retains the option to pursue court action for payment disputes. Franchisees should be aware of this and understand that they may be subject to legal action in a specific jurisdiction chosen by Beem Light Sauna if they fail to meet their payment obligations. It is advisable to seek legal counsel to fully understand the implications of this clause.