What is a Franchise in the context of a Beem Light Sauna franchise offering?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
services to our franchisees.
The Business and Franchises Offered. We are offering, under the terms of this Disclosure Document, the opportunity to become a franchisee to develop and operate one or more Studios (each, a "Franchise"). Studios offer consumer-grade infrared, red light, and chromotherapy solutions and related services and products in a private spa-like setting.
A Studio operates under the Brand and certain other trademarks, service marks, trade names, signs, associated designs, artwork, and logos (collectively, the "Marks"). We may designate other trade names, service marks, and trademarks as Marks and may change the Marks at any time.
A Studio operates under a prescribed system of specifications and operating procedures that we have developed and will continue to develop (the "System"). The distinguishing characteristics of the System include our Studio designs, layouts, and identification schemes (collectively, the "Trade Dress"); our specifications for equipment, inventory, accessories, and supplies; our website or series of websites for the Studios (the "System Website"); our relationships with vendors; our software and computer programs; our online booking system; our reservation procedures; the therapy programs or sessions (collectively, "Sessions") that you offer to customers; any Sessions that we have developed or may develop; the accumulated experience reflected in our operating procedures, customer service standards methods, and marketing techniques; and the mandatory and suggested policies, procedures, standards, specifications, rules, and requirements (collectively, the "System Standards") stated in our operations manuals (the "Manuals") and otherwise in writing. We may change, improve, add to, and further develop the elements of the System periodically.
You may purchase a Franchise to develop and operate one Studio at a mutually agreed upon site (the "Site") within an area ("Site Selection Area") that we will specify in the Franchise Agreement, which we and you will execute. Under the Franchise Agreement, you will have no obligation, nor any right, to open any additional Studios, nor will you have any right to (a) sublicense the Marks or the System to any other person or entity, (b) use the Marks or the System at any location other than the Site, or (c) use the Marks or the System in any wholesale, ecommerce, or other channel of distribution other than the operation of the Studio at the Site.
You must designate an Owner with at least a 10% ownership interest in your Entity as the "Operating Principal." The Operating Principal must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a manager to manage the day-to-day business of your Studio (the "Designated Manager"). Your Operating Principal may serve as your Designated Manager, unless we believe that he or she does not have sufficient experience or qualifications.
Studios are typically located in a metropolitan area or surrounding suburbs. Our standard prototype Studio is a one-story 1,300 to 1,800 square foot space.
Development Program. In addition, for qualified franchisees who desire the right to develop multiple Studios within a designated territory (the "Development Area") that meet certain conditions, we also offer the opportunity to enter into a Development Agreement with us (the "Development Agreement") to develop a specific number of Studios according to a predetermined, mandatory development schedule specified in the Development Agreement (the "Development Schedule").
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, a 'Franchise' is the opportunity to become a franchisee and develop and operate one or more Beem Light Sauna studios. These studios offer infrared, red light, and chromotherapy solutions, along with related services and products, in a private, spa-like setting. The studios operate under the Beem Light Sauna brand and associated trademarks, service marks, trade names, signs, designs, artwork, and logos. Beem Light Sauna may modify these marks at any time.
Specifically, a franchisee can purchase a Franchise to operate one studio at a mutually agreed-upon site within a specified Site Selection Area, as detailed in the Franchise Agreement. Unless a franchisee signs a Development Agreement, they are not obligated nor have the right to open additional studios. The Franchise Agreement also restricts the franchisee from sublicensing the Marks or the System, using them at any location other than the designated Site, or using them in any wholesale, e-commerce, or other distribution channels outside of the studio's operation at the Site.
The Beem Light Sauna studio operates under a prescribed system of specifications and operating procedures, referred to as the 'System.' This System includes studio designs, layouts, identification schemes (Trade Dress), equipment specifications, inventory, accessories, supplies, a System Website, vendor relationships, software, computer programs, an online booking system, reservation procedures, therapy programs or sessions (Sessions), and the System Standards detailed in the operations manuals. Beem Light Sauna retains the right to change, improve, add to, and further develop the elements of the System periodically.
For franchisees seeking to develop multiple studios, Beem Light Sauna offers a Development Agreement for a specific number of studios within a designated territory (Development Area), subject to a predetermined development schedule. Franchisees can operate these studios directly or through Affiliated Entities, provided they own at least 51% of the entity and the entity meets Beem Light Sauna's criteria for franchisees and owners. If a franchisee fails to meet the development schedule, Beem Light Sauna can terminate the Development Agreement, resulting in the loss of development rights and forfeiture of any unapplied Development Fees, though existing Franchise Agreements for opened studios remain unaffected.