Does the Beem Light Sauna franchise agreement allow for renewal or extension of the franchise term?
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. |
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, the franchise agreement allows for renewal or extension of the franchise term. The initial term of the Franchise Agreement is 10 years, beginning on the effective date and continuing from the date the studio opens for business. If a franchisee continues to operate after the expiration of the initial term, Beem Light Sauna may treat the term as extended on a month-to-month basis. This interim period can be terminated by either party with 30 days' notice.
Beem Light Sauna offers the option to renew the franchise for two additional consecutive terms of five years each, provided certain conditions are met. To renew, the franchisee must notify Beem Light Sauna of their intent to renew at least six months, but no more than 12 months, in advance of the current term's expiration. The franchisee must sign and return the successor franchise agreement, owner's guaranty, and ancillary agreements, which may contain materially different terms and conditions than the original agreement.
Additional requirements for renewal include refurbishing or renovating the studio to Beem Light Sauna's then-current specifications, executing a general release in favor of Beem Light Sauna and its affiliates, and ensuring the Operating Principal and Designated Manager complete the then-current training requirements. Furthermore, the franchisee must secure the right to continue operating at the site for the remainder of the successor term and ensure full compliance with the Franchise Agreement and all other related agreements. Finally, the franchisee must pay Beem Light Sauna the Successor Fee to finalize the renewal.