Does the Beem Light Sauna franchise agreement include State-Required Franchise Agreement Riders?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement directly against you.
- 10. Not An Employment Agreement. This is not an employment agreement. Nothing in this Agreement creates or should be taken as evidence of an agreement or understanding by us, express or implied, to continue your association with us for any specified period.
- 11. Modification and Waiver. Your obligations under this Agreement cannot be waived or modified except in writing.
- 12. Governing Law. This Agreement is governed by the laws of the state in which our principal office is located.
- 13. Attorney's Fees. If we have to take legal action to enforce this Agreement, we will be entitled to recover from you all of our costs, including reasonable attorney's fees, to the extent that we prevail on the merits.
- 14. Representation. You certify that you have read and fully understood this Agreement, and that you entered into it willingly.
| WITNESS | EMPLOYEE or |
|---|---|
| INDEPENDENT CONTRACTOR |
EXHIBIT I TO THE FRANCHISE DISCLOSURE DOCUMENT
Additional State-Required Disclosures and Riders
ADDITIONAL DISCLOSURES FOR THE FRANCHISE DISCLOSURE DOCUMENT OF BEEM FRANCHISOR LLC
The following are additional disclosures for the Franchise Disclosure Document of Beem Franchisor LLC required by various state franchise laws. Each provision of these additional disclosures will only apply to you if the applicable state franchise registration and disclosure law applies to you.
CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, AND WISCONSIN
The following provision applies only to franchisees and franchised Studios that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and/or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
CALIFORNIA
-
- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
-
- SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF BUSINESS OVERSIGHT BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR DEVELOPMENT AGREEMENT OR FRANCHISE AGREEMENT.
-
- OUR WEBSITE, www.beemlightsauna.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF BUSINESS OVERSIGHT AT www.dbo.ca.gov.
-
- The following is added at the end of Item 3:
Neither we, our parent, predecessor or affiliates nor any person in Item 2 of the Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. Sections 78a et seq., suspending or expelling such persons from membership in that association or exchange.
- The following is added to the "Remarks" column of the line item titled "Late Fee and Interest" in Item 6:
The highest interest rate allowed under California law is 10% annually.
- The following paragraphs are added at the end of Item 17:
California Business and Professions Code Sections 20000 through 20043 provide rights to the franchisee and multi-unit developer concerning termination or nonrenewal of a franchise. If the Development Agreement or Franchise Agreement contains a provision that is inconsistent with the law, and the law applies, the law will control.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
Yes, according to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchise agreement includes state-required riders. Exhibit I to the FDD contains additional state-required disclosures and riders. These additional disclosures apply only if the state franchise registration and disclosure law applies to the franchisee.
For franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, any statement or questionnaire signed cannot waive claims under state franchise law or disclaim reliance on statements made by Beem Light Sauna. The FDD also includes specific additional disclosures for franchisees in California, Maryland, and Minnesota.
For example, the Maryland rider includes stipulations regarding governing law, consent to jurisdiction, and limitation of claims, ensuring that Maryland law applies to claims arising under the Maryland Franchise Registration and Disclosure Law, and preserving the franchisee's right to bring a lawsuit in Maryland under that law. Similarly, the Minnesota rider includes specific modifications and additions to sections of the franchise agreement, such as those related to non-competition and venue, to comply with Minnesota law.