What is the effect of modifications to the Development Agreement on the Beem Light Sauna guarantee?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Defined Terms. All references to "Franchisor" in this Guarantee shall be deemed to include its Affiliates (as defined below), its successors, and its assigns.
All references to the "Development Agreement" in this Guarantee shall include all extension or modifications to such agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the guarantee provided by the guarantors extends to any modifications of the Development Agreement. The document states that all references to the Development Agreement include all extensions or modifications to such agreement.
This means that the guarantors' obligations are not limited to the original terms of the Development Agreement. If the agreement is extended, renewed, or modified, the guarantee remains in effect, covering the franchisee's obligations under the altered agreement. This ensures that Beem Light Sauna is protected financially even if the terms of the development change over time.
For a prospective Beem Light Sauna franchisee, this implies that any changes to the Development Agreement that increase their financial obligations will also be covered by the guarantee. The guarantor should be aware that their liability extends beyond the initial agreement and includes any subsequent modifications. This clause protects Beem Light Sauna, but it places a potentially greater burden on the guarantor, who must remain aware of any changes to the Development Agreement and their implications for the franchisee's financial obligations.