Is a Beem Light Sauna franchisee required to identify themselves as an independent contractor?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We are a franchisee of Beem Franchisor LLC ("Franchisor") under a Franchise Agreement dated [DATE] (the "Franchise Agreement"), pursuant to which Franchisor granted us the right to operate a franchised business (the "Studio") under the "beem® Light Sauna" name (the "Brand"). We have a license to use the Brand and certain other trademarks designated by Franchisor (collectively, the "Marks"), certain policies and procedures used in the operation of the Studios (the "System"), and the confidential information developed and owned by Franchisor and its affiliates in our Studio. Franchisor recognizes that, in order for us to effectively operate our business, our employees and independent contractors whom we retain must have access to certain confidential information and trade secrets owned by Franchisor. Disclosure of this confidential information and trade secrets to unauthorized persons, or its use for any purpose other than the operation of our Studio, would harm Franchisor, other franchise owners, and us. Accordingly, Franchisor requires us to have you sign this Agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beem Light Sauna franchisees are not explicitly required to identify themselves as independent contractors. However, the document mentions that the franchisor, Beem Franchisor LLC, recognizes the need for franchisees to have employees and independent contractors. These individuals must have access to confidential information to effectively operate the business.
The Franchise Agreement requires franchisees to ensure that their employees and independent contractors sign an agreement to protect the franchisor's confidential information and trade secrets. This agreement aims to prevent unauthorized disclosure or use of confidential information, which could harm the franchisor, other franchisees, and the franchisee's own business.
While the FDD does not mandate that franchisees operate as independent contractors, it does emphasize the importance of managing and protecting confidential information among those working within the Beem Light Sauna franchise, whether they are employees or independent contractors. Prospective franchisees should clarify with Beem Light Sauna the specific requirements and implications of hiring independent contractors versus employees, and the associated responsibilities for protecting the brand's confidential information.