Can a Beem Light Sauna franchise be transferred if the studio is not open and operating?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1 Events of Default. Any one or more of the following constitutes an "Event of Default" under this Agreement:
(c) You fail to sign a Site Lease or purchase agreement that we have approved for a site that we have accepted by the Site Acquisition Deadline;
(d) You fail to open for business by the Opening Deadline;
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Beem Light Sauna does not explicitly state whether a franchise can be transferred before the studio opens and begins operating. However, the FDD does state conditions for transfer in general.
According to Section 14.1, several events can trigger a default of the agreement, including failing to open for business by the Opening Deadline. Additionally, Section 14.1 indicates that failing to sign a Site Lease or purchase agreement that Beem Light Sauna has approved for a site that they have accepted by the Site Acquisition Deadline is also considered an event of default.
Because the FDD does not directly address the transfer of a pre-opening franchise, it is important for a prospective Beem Light Sauna franchisee to seek clarification from the franchisor regarding the specific conditions and restrictions that may apply to such a transfer. Understanding the franchisor's policies on this matter is crucial before entering into a franchise agreement.