Can a Beem Light Sauna franchisee terminate the Development Agreement?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, the table summarizing Item 17 states that termination of the Development Agreement by the franchisee is 'Not applicable'. This means the Development Agreement does not contain a provision allowing the franchisee to terminate it.

However, Beem Light Sauna does have the right to terminate the Development Agreement if the franchisee commits certain violations, as detailed in Section 6.1 of the Development Agreement. These violations include failing to execute a Franchise Agreement timely or failing to have the required number of studios open and operating by the deadlines specified in the Development Schedule. Breaching any Franchise Agreement or other agreement with Beem Light Sauna or its affiliates, or failing to comply with any other provision in the Development Agreement, also constitute grounds for termination.

Upon termination of the Development Agreement, the franchisee will lose the right to develop additional studios. It is important for prospective franchisees to understand the conditions under which Beem Light Sauna can terminate the agreement and the implications of such termination on their development rights. Franchisees should carefully review Section 6.1 of the Development Agreement to fully understand their obligations and the potential consequences of non-compliance.