Who is entitled to proceeds from litigation relating to Beem Light Sauna's Intellectual Property?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Franchisor LLC has the right to initiate, direct, and control any litigation or administrative proceeding relating to its Intellectual Property. This includes any settlement decisions.

The FDD clearly states that Beem Light Sauna is entitled to retain any and all proceeds, damages, and other sums, including attorneys' fees, that are recovered or owed to them or their affiliates in connection with any such legal action. This means that if Beem Light Sauna pursues litigation to protect its trademarks, trade dress, copyrights, or trade secrets, any financial benefits resulting from those actions will belong to the franchisor.

As a Beem Light Sauna franchisee, you are obligated to notify the franchisor promptly of any unauthorized use of the Intellectual Property that you become aware of, as well as any challenges to the validity of Beem Light Sauna's ownership or right to license the Intellectual Property. Franchisees must also execute all documents and provide any assistance deemed necessary by Beem Light Sauna to maintain the validity and enforceability of the Intellectual Property.

This arrangement is typical in franchising, as the franchisor owns the brand and system and is responsible for protecting it. The franchisee benefits from the brand's reputation and is therefore obligated to assist in its protection, but the franchisor retains the financial benefits of any successful legal action.