Following termination of the Beem Light Sauna agreement, what is the geographic restriction on engaging in a Competitive Business?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you will be subject to the same restrictions as in Section 4, except the restrictions in Sections 4(a) and 4(b) will be geographically limited to any Competitive Business that is located within a 10-mile radius of our Studio or any other Studio that is operating or under development at the time your association with us ends.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, for two years after the franchise agreement ends, franchisees are restricted from engaging in a Competitive Business within a specific geographic area. This restriction applies regardless of the reason for the end of the agreement, whether it's due to termination, expiration, or transfer of ownership.
The geographic limitation specifies that franchisees cannot be involved in a Competitive Business within a 10-mile radius of their former Beem Light Sauna studio. This radius also extends to any other Beem Light Sauna studio that is either operating or under development at the time the franchise agreement concludes.
A Competitive Business includes any sauna studio, salon with sauna offerings, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care. It also encompasses any business offering similar products, services, or therapy programs to those of a Beem Light Sauna studio, as well as entities that grant franchises or licenses for these types of businesses. This non-compete clause aims to protect Beem Light Sauna's market and brand integrity by preventing former franchisees from directly competing in close proximity to existing or planned locations.