Does the Beem Light Sauna FDD state that Beem Light Sauna or its affiliates are involved in the AKT Lawsuit?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Ryan Junk, our Chief Executive Officer, previously served as Chief Operating Officer of Xponential and various subsidiaries of Xponential, and Anthony Geisler, the Chief Executive Officer of Sequel Brands, previously served in the same role for Xponential and various subsidiaries of Xponential. They have been named as defendants, along with other officers and employees of Xponential, in the following lawsuits involving Xponential and its affiliates, which involve similar claims and allegations. We are not affiliated with Xponential and these lawsuits do not involve us or our affiliates.
- Dance Fitness Michigan LLC, et al. v.
AKT Franchise, LLC, et al., filed August 30, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023-01345433- CU-AT-CXC (the "AKT Lawsuit").
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Light Sauna states that they and their affiliates are not involved in the AKT Lawsuit. However, Ryan Junk, Beem Light Sauna's Chief Executive Officer, and Anthony Geisler, the Chief Executive Officer of Sequel Brands, were named as defendants in lawsuits involving Xponential and its affiliates due to their previous roles at Xponential. The AKT Lawsuit, filed on August 30, 2023, in the Superior Court of the State of California, County of Orange, involves similar claims and allegations against these individuals and other officers and employees of Xponential.
The AKT Lawsuit was initiated by former AKT franchisees against AKT Franchise, LLC, Xponential Entities, H&W Entities, LAG Fit, Inc., MGAG LLC, and several individuals, including Ryan Junk. The plaintiffs in the AKT Lawsuit allege violations of pre-sale disclosure obligations, fraudulent inducement to invest in franchises, breach of the implied covenant of good faith and fair dealing, breach of a purported agreement to provide financing, and unfair and deceptive trade practices.
The plaintiffs in the AKT Lawsuit seek declaratory and injunctive relief regarding the enforcement of mandatory arbitration provisions, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest. The defendants in the AKT Lawsuit have filed a demurrer to the complaint. Beem Light Sauna emphasizes that they are not affiliated with Xponential and that these lawsuits do not involve Beem Light Sauna or its affiliates.