What is the Beem Light Sauna franchisee's obligation regarding operating the Studio during the Term?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;
NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:
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- During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Studio and for no other purpose.
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- Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the beem® Light Sauna system as Company may from time to time prescribe for the Studio.
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- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
Beem Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchisee is permitted to use the premises for the operation of the Studio and for no other purpose during the term of the Franchise Agreement. This obligation is documented in the Lease Rider, which is executed as a condition for the company authorizing the franchisee to enter into the lease. The Lease Rider ensures that the franchisee adheres to the intended use of the premises as a Beem Light Sauna studio.
This stipulation has significant implications for a prospective Beem Light Sauna franchisee. It restricts the franchisee from using the leased premises for any business activities other than operating the Beem Light Sauna studio. This exclusivity ensures that the franchisee focuses solely on developing and managing the Beem Light Sauna business, aligning with the franchisor's brand and operational standards. It also protects the franchisor's interests by preventing the franchisee from engaging in other ventures that could potentially compete with or dilute the Beem Light Sauna brand.
Furthermore, the Lease Rider includes provisions that address the use of trademarks, service marks, signs, decor items, and color schemes, ensuring they comply with the Beem Light Sauna system as prescribed by the company. The landlord also agrees to furnish the company with copies of all letters and notices sent to the franchisee pertaining to the Lease and the Premises. This ensures that Beem Light Sauna is kept informed of any communications between the landlord and franchisee, allowing them to intervene if necessary to protect their interests and maintain brand consistency.
In summary, the Lease Rider is a critical document that outlines the franchisee's obligations regarding the use of the premises, ensuring that it is exclusively used for operating the Beem Light Sauna studio. This restriction is designed to maintain brand integrity, protect the franchisor's interests, and ensure that the franchisee remains focused on the success of the Beem Light Sauna business.