Will a Beem Light Sauna franchisee receive an exclusive territory?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
block. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory. Except as stated in the preceding sentence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
- (1) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory. A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations;
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory, or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory; and
- (5) acquire, be acquired by, or merge with other companies with existing studios or businesses anywhere (including inside or outside of the Territory) and, even if such businesses are located in the Territory, (i) convert the other businesses to the Brand, (ii) permit the other businesses to continue to operate under another name, and/or (iii) permit the businesses to operate under another name and convert existing Studios to such other name.
Currently, we anticipate offering on-demand subscriptions, retail products, and teacher training programs under the Marks or other marks, but we and our affiliates reserve the right to conduct any of the aforementioned activities.
As long as you are in compliance with the Franchise Agreement, your exclusive rights in the Territory will not be modified for any reason, except by mutual written agreement signed by both parties.
We will not compensate you for any of our activities in your Territory, even if they have an impact on your Studio.
Minimum Sales Levels. During the Term, you must achieve the following minimum sales levels (the "Minimum Sales Levels"): (A) average monthly Gross Sales of at least $30,000 in
the first full calendar year after the Opening Date; and (B) average monthly Gross Sales of at least $40,000 in the second and each subsequent full calendar year after the Opening Date. If you fail to meet the Minimum Sales Levels in any calendar year, you must create a business plan that we must approve in writing and you must diligently implement the business plan during the next calendar year.
Source: Item 12 — TERRITORY (FDD pages 47–51)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. While franchisees are granted a Territory, they may face competition from other franchisees, outlets that Beem Light Sauna owns, other distribution channels, or competitive brands that Beem Light Sauna controls.
Once Beem Light Sauna accepts a site within a non-exclusive Site Selection Area and the franchisee secures the site, Beem Light Sauna will provide an area with protected rights, referred to as the "Territory." The size of the Territory can vary based on location and demographics, typically encompassing either a population of approximately 50,000 people surrounding the studio or a two-mile radius from the studio's front door, whichever includes fewer people. However, in high-density urban markets with populations exceeding one million, Beem Light Sauna might not provide any territory or might reduce it to no more than a city block.
Beem Light Sauna and its affiliates retain the right to conduct business activities under any name and in any geographic area, regardless of proximity to the franchisee's studio. This includes establishing studios or businesses offering similar products or services under different names outside the Territory, selling products through e-commerce or retail stores, advertising anywhere, and acquiring or merging with other companies. Beem Light Sauna may also establish studios at Non-Traditional Locations such as gyms, cruise ships, military bases, college campuses, airports, hotels, and casinos, even within a franchisee's Territory.
As long as the franchisee complies with the Franchise Agreement, their exclusive rights in the Territory will not be modified, except by mutual written agreement. However, Beem Light Sauna will not compensate franchisees for any activities within their Territory, even if those activities impact the studio. Franchisees must meet minimum sales levels, starting with average monthly Gross Sales of $30,000 in the first full calendar year after the Opening Date, and $40,000 in the second and subsequent years. Failure to meet these levels for two consecutive years may result in a reduction of the Territory size or termination of the Franchise Agreement.