What fee must a Beem Light Sauna franchisee pay to us to be eligible for a Successor Term?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
2.3 Interim Period.
If (i) we have not provided you with written notice that you will not be eligible to enter into a Successor Term, (ii) you and your Owners do not sign and return the Successor Agreements and comply with each of the provisions set forth in Section 2.2 (Successor Term) prior to the expiration of this Agreement, and (iii) you continue to operate the Studio and accept the benefits of this Agreement after the expiration of this Agreement, then, at our option, this Agreement may be treated either as (x) expired as of the date of the expiration of the Term, with you then operating without any authorization to do so, in violation of our rights; or (y) continued on a month-to-month basis (the "Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after the other party's receipt of the notice to terminate the Interim Period.
The Interim Period shall be considered part of the Term.
However, if you enter into a Successor Term, the Successor Term will be deemed to have begun upon expiration of the expired term, rather than the Interim Period.
If we allow for an Interim Period, all of your obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired and all obligations and restrictions imposed on you upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period.
However, beginning on the 30th day of the Interim Period, the monthly Royalty Fee (as defined in Section 3.2 (Royalty Fee)) shall increase to 10% of your Studio's Gross Sales (as defined in Section 3.2(b) (Gross Sales)) during each week that you fail to enter into a Successor Term until (A) you comply with the conditions necessary to acquire a Successor Term (including execution of the Successor Agreements and a general release and payment of the Successor Fee) or (B) this Agreement is terminated.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, a franchisee must pay a Successor Fee to be eligible for a Successor Term.
In addition to paying the Successor Fee, the franchisee must also meet other requirements to be eligible for a Successor Term. These include executing a general release of claims against Beem Light Sauna, completing all current training requirements, securing the right to continue operating at the site, and fully complying with the Franchise Agreement and all other related agreements. The franchisee must also be in full compliance with all Related Agreements, including operating all Studios in compliance with all System Standards and being current with all fees or payments due.
If a franchisee continues to operate the Studio after the expiration of the Franchise Agreement but has not yet met the requirements for a Successor Term, Beem Light Sauna may, at its option, treat the agreement as either expired or continued on a month-to-month basis, known as the Interim Period. During this Interim Period, all obligations remain in effect. However, beginning on the 30th day of the Interim Period, the monthly Royalty Fee increases to 10% of the Studio's Gross Sales until the franchisee complies with the conditions necessary to acquire a Successor Term, including payment of the Successor Fee.