What is the exception to the limited territorial protection offered to Beem Light Sauna developers?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Area.
Limited Territorial Protection. You will not receive an exclusive territory under the Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. If you (and your Affiliated Entities, as applicable) are fully complying with your (and their) obligations under the Development Agreement, the initial franchise agreement executed thereunder, and all other franchise agreements then in effect between us and you (and your Affiliated Entities, as applicable), during the term of the Development Agreement, we (and our affiliates) will not except with respect to Studios proposed to be located at or within "Non-Traditional Locations" establish or operate, or license third parties to establish or operate, Studios that have their physical locations within the Development Area. There are no other restrictions on our and our affiliates' activities in the Development Area during the term of the Development Agreement. We (and our affiliates) reserve the right without any restrictions whatsoever to pursue and establish, or franchise or license others to pursue and establish, Studios to be located at or within Non-Traditional Locations having their physical locations within the Development Area.
The location exclusivity described in the preceding paragraph (with the noted exception for Non-Traditional Locations) is the only restriction on our (and our affiliates') activities within the Development Area during the term of the Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 47–51)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, while developers receive limited territorial protection, this protection does not extend to "Non-Traditional Locations." Beem Light Sauna and its affiliates retain the right to establish or license others to establish studios at these Non-Traditional Locations within the Development Area.
A "Non-Traditional Location" is defined as a site within a larger venue that draws at least 75% of its customers from that venue. Examples of Non-Traditional Locations include big box gyms, fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, and multi-unit residential properties.
This exception means that even within a developer's designated area, Beem Light Sauna can establish additional locations in venues like gyms or hotels, potentially creating competition for the developer's studios. This is a significant consideration for prospective developers as it limits the exclusivity of their territory and introduces the possibility of competition from the franchisor itself within that territory. Franchisees should carefully evaluate the potential impact of Non-Traditional Locations on their business when considering a Beem Light Sauna development agreement.