Can Beem Light Sauna exclude specific assets from the purchase of my studio's assets?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
15.7 Our Right to Purchase Studio Assets.
(a) Exercise of Option. Upon termination of this Agreement for any reason (other than your termination in accordance with Section 14.3 (Termination By You)) or expiration of this Agreement without our and your signing a successor franchise agreement, we have the option to purchase the inventory, supplies, Operating Assets, and other assets used in the operation of the Studio that we designate (the "Purchased Assets"). As a first step in exercising our option, we must give you written notice within 15 days after the date of termination or expiration of our intent to conduct due diligence (the "Exercise Notice"). We have the unrestricted right to exclude any assets we specify relating to the Studio from the Purchased Assets and not acquire them. You agree to provide us the financial statements and other information we reasonably require, and to allow us to inspect the Studio and its assets, to determine whether to exercise our option. If a Franchisee Party owns the Site, we may elect to include a fee simple interest in the Site as part of the Purchased Assets or, at our option, lease the Site from the Franchisee Party (or an Entity controlled by your Owner) for an initial ten-year term with one renewal term of five years (at our option) on commercially reasonable terms, which shall include the right to sublease the Site to another party. You and your Owners agree to cause your Affiliate or any Entity controlled by such Owner to comply with these requirements. If a
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Beem Light Sauna has the option to purchase designated assets of the studio. Beem Light Sauna must provide written notice within 15 days of termination or expiration of their intent to conduct due diligence.
Beem Light Sauna has the unrestricted right to exclude any assets related to the studio from the purchased assets. As a prospective franchisee, this means that Beem Light Sauna can choose which assets they want to buy and are not obligated to purchase all assets.
This clause protects Beem Light Sauna by allowing them to avoid purchasing assets that may be obsolete, damaged, or otherwise undesirable. It also allows them to focus on acquiring the most valuable assets of the studio, potentially reducing the overall purchase price. However, if Beem Light Sauna chooses not to purchase certain assets, the franchisee will need to find alternative ways to dispose of or utilize those assets, which could involve additional costs or effort.