Is a Beem Light Sauna franchisee required to maintain insurance coverage for the Studio?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
All coverage must be on an "occurrence" basis, except for the employment practices liability insurance coverage, which is on a "claims made" basis.
All policies shall apply on a primary and non-contributory basis to any other insurance or self-insurance that we or our Affiliates maintain.
All general liability and workers' compensation
coverage must provide for waiver of subrogation in favor of us and our Affiliates. We may, upon at least 60 days' notice to you, periodically increase the amounts of coverage required and/or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. All insurance policies must name us and any Affiliates we designate as an additional insured and provide for 30 days' prior written notice to us of a policy's material modification or cancellation. You agree periodically to send us a valid certificate of insurance or duplicate insurance policy evidencing that you have maintained the required coverage and paid the applicable premiums. If you fail to obtain or maintain (or to prove that you have obtained or maintained) the insurance we specify, in addition to our other remedies, we may (but need not) obtain such insurance for you and the Studio on your behalf, in which event you shall cooperate with us, and we may charge you up to 120% of our and our affiliates' costs and epenses related to obtaining and maintaining the insurance.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
Yes, according to the 2025 Beem Light Sauna Franchise Disclosure Document, franchisees are required to maintain insurance coverage for their Studio. The insurance coverage must be on an "occurrence" basis, except for employment practices liability insurance, which can be on a "claims made" basis.
All insurance policies must apply on a primary and non-contributory basis relative to any other insurance or self-insurance that Beem Light Sauna or its affiliates maintain. Furthermore, general liability and workers' compensation coverage must provide a waiver of subrogation in favor of Beem Light Sauna and its affiliates.
Beem Light Sauna has the right to increase the required coverage amounts or require different or additional insurance coverage to reflect inflation, new risks, changes in law, higher damage awards, or other relevant changes. Beem Light Sauna must provide at least 60 days' notice before increasing the amounts of coverage required. All insurance policies must name Beem Light Sauna and any designated affiliates as additional insured parties and provide 30 days' prior written notice of any material modification or cancellation of a policy.
Franchisees must periodically send Beem Light Sauna a valid certificate of insurance or a duplicate insurance policy as evidence of maintained coverage and premium payments. If a franchisee fails to obtain or maintain the specified insurance, Beem Light Sauna has the option to obtain such insurance on behalf of the franchisee and the Studio. In such cases, the franchisee is required to cooperate, and Beem Light Sauna may charge the franchisee up to 120% of the costs and expenses related to obtaining and maintaining the insurance.