What is the effect of Beem Light Sauna consenting to a transfer on future compliance with the agreement?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, if Beem Light Sauna consents to a transfer of the franchise agreement, this consent does not waive any existing claims that Beem Light Sauna has against the transferor. Furthermore, Beem Light Sauna's consent does not waive its right to demand exact compliance with the terms of the franchise agreement.

This means that even after a transfer is approved, the original franchisee (transferor) remains liable for any breaches or outstanding obligations that occurred before the transfer's effective date. The new franchisee (transferee) is expected to comply fully with the franchise agreement's terms, and Beem Light Sauna retains the right to enforce these terms strictly.

This provision protects Beem Light Sauna by ensuring that past non-compliance issues are not overlooked during a transfer. It also reinforces the importance of adhering to the franchise agreement, as Beem Light Sauna can still pursue legal or financial remedies for any violations, even after a new franchisee takes over the operations. Prospective franchisees should be aware that any existing issues with the franchise location they are taking over could still affect them, even if they were not responsible for the original problem.