Where can I find the Franchise Agreement mentioned in Item 17 for Beem Light Sauna?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Sections 2.1 and 2.3 | Begins on the effective date of your Franchise Agreement and continues for 10 years from the date you open your Studio for business. If you continue operating after expiration, we may treat the term as extended on a month-to month basis until either we or you deliver notice ending that extension, in which case that interim period will terminate 30 days after the other party's receipt of the notice to terminate the interim period. |
| b. | Renewal or extension of the term | Section 2.2 | If you meet the conditions, you may obtain two additional consecutive successor terms of five years each. |
| c. | Requirements for franchisee to renew or extend | Section 2.2 | You have notified us of your intent to renew at least six months in advance but no more than 12 months in advance; you and your Owners (as applicable) have signed and returned to us the successor franchise agreement, owner's guaranty, and ancillary agreements (modified as we consider necessary to reflect changes that we consider appropriate for the successor term), which may have materially different terms and conditions than your original Franchise Agreement; you have refurbished or renovated the Studio to our then-current specifications; you and your Owners have executed a general release in favor of us and our affiliates; you have completed, and have had your Operating Principal and Designated Manager complete, our then-current training requirements; you have secured from your landlord the right to continue operating at the Site for the remainder of the successor term; you, your Owners, and your affiliates (the ("Franchisee Parties") have fully complied with the Franchise Agreement and all other agreements between any Franchisee Party and us, our affiliates, and/or our approved vendors related to the Studio or any other Studios (each, a "Related Agreement"); at the time you provide notice of your intent to enter into a successor term and at the expiration of the then-current term of the Franchise Agreement, the Franchisee Parties are in full compliance with all Related Agreements; and you have paid us the Successor Fee. |
| d. | Termination by franchisee | Section 14.3 | If we commit a material breach of the Franchise Agreement and we fail to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from you, you may terminate the Franchise Agreement. |
| l. | Our approval of transfer by franchisee | Section 13.3 | We have the right to approve all transfers, except for your grant of a security interest in the Site (if owned by you), the Studio, or any Operating Asset to a party providing financing for your acquisition, development, and/or operation of the Studio. |
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
| q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or Sessions that are similar to those offered by a Studio, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") in the United States; (B) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise; (C) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (D) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio. |
| r. | Non-competition covenants after the Franchise Agreement is terminated or expires | Section 12.2 | For two years after the expiration of termination of your Franchise Agreement, you and your Owners will be subject to the same restrictions stated in Item 17(q) above, except the restrictions stated in (A) and (B) of Item 17(q) will be geographically limited to any Competitive Business that is located within a 10-mile radius of your former Studio or any other Studio that is operating or under development at that time. |
| s. | Modification of the agreement | Section 17.2 | Except for modifications to the Manuals, no modifications unless agreed to in writing by both parties. |
| t. | Integration/merger clause | Section 17.1 | Only the terms of the Franchise Agreement are binding (subject to state law). Any other promises made outside of this Disclosure Document or the Franchise Agreement may not be enforceable. Nothing in the Franchise Agreement or in any other related written agreement is intended to disclaim representations made in this franchise disclosure document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Item 17 provides a table summarizing key provisions within the Franchise Agreement and indicates the specific section in the agreement where each provision is detailed.
For example, the table outlines provisions such as the length of the franchise term, which is found in Sections 2.1 and 2.3 of the Franchise Agreement, and explains that the term begins when you open your Beem Light Sauna studio and lasts for 10 years. The table also references Section 2.2 regarding the conditions for renewal or extension of the term, specifying that franchisees who meet the listed requirements may obtain two additional consecutive successor terms of five years each.
Other provisions covered in Item 17's table include termination rights, transfer conditions, non-competition covenants, modification processes, and integration clauses, each cross-referenced to a specific section within the Franchise Agreement. While Item 17 summarizes these provisions, the full Franchise Agreement itself contains the complete, legally binding terms and conditions. The actual Franchise Agreement is a separate document that Beem Light Sauna provides to prospective franchisees, typically included as an exhibit to the FDD or as a stand-alone document during the disclosure process.