factual

For a Beem Light Sauna franchise, what is the purpose of the franchisor's review of the Site Lease?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

o any all disputes between Franchisor and any of the Guarantors, as though Guarantor were the "Franchisee" referred to in the Franchise Agreement.

  • 6. Miscellaneous. This Agreement will be binding upon the Guarantors and their respective heirs, executors, successors, and assigns, and will inure to the benefit of Franchisor and its successors and assigns.

IN WITNESS WHEREOF, the undersigned Guarantors have caused this Guarantee to be duly executed as of the day and year first above written.

Print Name:

APPENDIX D TO THE FRANCHISE AGREEMENT

LEASE RIDER

and ("Franchisee"), and
between
Beem
Franchisor
LLC
("Company"),
("Landlord").
WHEREAS, Company and Franchisee are parties to a Franchise Agreement dated
(the "Franchise Agreement"); and
WHEREAS, the Franchise Agreement provides that Franchisee will operate a beem®
Light Sauna Studio ("Studio") at a location that Franchisee selects and Company accepts; and
WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider
is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at
(the "Premises") for the purpose of constructing and operating the Studio in accordance with the
Franchise Agreement; and

WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;

NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:

    1. During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Studio and for no other purpose.
    1. Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the beem® Light Sauna system as Company may from time to time prescribe for the Studio.
    1. Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:

Beem Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com

    1. Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the beem® Light Sauna system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the beem® Light Sauna trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision. Company will repair or reimburse Landlord for the cost of any damage to the Premises' walls, floor or ceiling that result from Company's removal of trade dress items and other property from the Premises.
    1. Franchisee will be permitted to assign the Lease to Company or its designee upon the expiration or termination of the Franchise Agreement. Landlord consents to such an assignment and agrees not to impose any assignment fee or similar change, or to increase or accelerate rent under the Lease, in connection with such an assignment.
    1. If Franchisee assigns the Lease to Company or its designee in accordance with the preceding paragraph, the assignee must assume all obligations of Franchisee under the Lease from and after the date of assignment, but will have no obligation to pay any delinquent rent or to cure any other default under the Lease that occurred or existed prior to the date of the assignment.
    1. Franchisee may not assign the Lease or sublet the Premises without Company's prior written consent, and Landlord will not consent to an assignment or subletting by Franchisee without first verifying that Company has given its written consent to Franchisee's proposed assignment or subletting.
    1. Landlord and Franchisee will not amend or modify the Lease in any manner that could materially affect any of the provisions or requirements of this Lease Rider without Company's prior written consent.
    1. The provisions of this Lease Rider will supersede and control any conflicting provisions of the Lease.

Source: Item 23 — RECEIPT (FDD pages 71–230)

What This Means (2025 FDD)

According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchisor's review of the Site Lease, formalized through a Lease Rider, serves multiple critical purposes. Beem Light Sauna requires a Lease Rider to be executed as a condition of authorizing the franchisee to enter into the lease. This Lease Rider outlines specific rights and responsibilities for the franchisor, franchisee, and landlord, ensuring that the leased premises align with the franchisor's standards and operational requirements. The Lease Rider ensures the franchisee will be permitted to use the premises only for the operation of the Studio. It also ensures that the landlord consents to the franchisee's use of trademarks, service marks, signs, decor items, and color schemes as prescribed by Beem Light Sauna. This protects the brand's uniformity and customer experience. The landlord must also furnish Beem Light Sauna with copies of all letters and notices sent to the franchisee, allowing the franchisor to stay informed of any lease-related issues. The notice address for Beem Franchisor LLC is Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com.

Beem Light Sauna retains the right to enter the premises to make modifications necessary to protect its system and marks, cure defaults under the Franchise Agreement or Lease, or remove distinctive trade dress elements upon expiration or termination of the Franchise Agreement. This provision safeguards the franchisor's brand and operational integrity. The franchisee is permitted to assign the Lease to Beem Light Sauna or its designee upon the expiration or termination of the Franchise Agreement, with the landlord's consent and without assignment fees or rent increases. This provides Beem Light Sauna with flexibility in managing the location after the franchise term. The franchisee cannot assign the Lease or sublet the premises without Beem Light Sauna's prior written consent, ensuring the franchisor maintains control over the location's occupancy. The landlord will not consent to an assignment or subletting by Franchisee without first verifying that Company has given its written consent to Franchisee's proposed assignment or subletting.

Furthermore, the landlord and franchisee cannot amend or modify the Lease in any manner that could materially affect the Lease Rider's provisions without Beem Light Sauna's prior written consent. This prevents alterations that could undermine the franchisor's rights or the studio's operational standards. The Lease Rider's provisions supersede any conflicting terms in the Lease, establishing the franchisor's control over key aspects of the lease agreement. The landlord acknowledges that Beem Light Sauna is not a party to the Lease and has no liability unless the Lease is assigned to and assumed by them. Overall, the franchisor's review and the Lease Rider serve to protect Beem Light Sauna's brand, operational standards, and financial interests, while also providing a framework for managing the leased premises throughout the franchise term and beyond.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.