Does the Beem Light Sauna franchise agreement include State-Required Development Agreement Riders?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ales activity relating to the Development Agreement occurred in Illinois and the Studios that you will operate and develop under the Development Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois.
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- ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added as Section 13 of the Development Agreement:
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- Illinois Franchise Disclosure Act. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act or any other law of Illinois is void. However, that Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any provision of the Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Development Agreement.
BEEM FRANCHISOR LLC (IF ENTITY): [Name] By: Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:
RIDER TO THE BEEM FRANCHISOR LLC DEVELOPMENT AGREEMENT FOR USE IN THE STATE OF NEW YORK
THIS RIDER (this "Rider") is made and entered into by and between Beem Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
- BACKGROUND.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchise agreement may include state-specific riders, depending on the state where the franchise will be located. For instance, the FDD mentions a specific rider for New York, as well as a general reference to state-specific riders for Washington. These riders are designed to ensure compliance with state franchise laws and may modify the terms of the standard Development Agreement.
For franchisees in New York, the rider includes specific provisions related to termination rights under Article 33 of the General Business Law of the State of New York. This ensures that franchisees are aware of and can exercise their legal rights as provided by New York law. The rider is signed concurrently with the Development Agreement and applies if the franchisee is domiciled in New York or if any sales activity related to the agreement occurred in New York.
Additionally, for franchisees planning to operate in Illinois, the FDD notes that a rider is required if any sales activity relating to the Development Agreement occurred in Illinois, or if the franchisee is domiciled there. This rider includes a clause stating that any provision in the agreement that waives compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, protecting the franchisee's rights under Illinois law.
Prospective Beem Light Sauna franchisees should carefully review Exhibit I of the FDD, titled "Additional State-Required Disclosures and Riders," to determine if any state-specific riders apply to their situation. It is also important to consult with a legal professional to understand the implications of these riders and how they may affect the franchise agreement in their specific state.