Does the Beem Light Sauna franchise agreement include a mutual waiver of punitive damages?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchise agreement includes a mutual waiver of punitive damages, but with conditions based on state laws. Specifically, for franchisees in Minnesota, the mutual waiver of jury trial and punitive damages in Sections 16.4 and 16.5 of the Franchise Agreement are deleted if and to the extent required by the Minnesota Franchises Law. Similarly, for franchisees in Illinois, Section 16.5 regarding the mutual waiver of punitive damages does not act as a condition that waives compliance with any provision of the Illinois Franchise Disclosure Act.

This means that while Beem Light Sauna generally seeks a mutual waiver of punitive damages in its franchise agreements, the enforceability of this waiver depends on the franchisee's location and the specific franchise laws of that state. In states like Minnesota and Illinois, the franchisee's rights under state franchise laws are protected, and the waiver may not be fully enforceable.

For a prospective Beem Light Sauna franchisee, this highlights the importance of understanding the specific state laws that govern franchising in their area. It also suggests that the franchise agreement may be subject to modification based on these state-specific requirements, as indicated by the inclusion of state-specific riders. Franchisees should consult with an attorney to fully understand the implications of these waivers and how they apply in their specific circumstances.