Geographically, where are Beem Light Sauna franchisees prohibited from engaging in a Competitive Business during the term of the franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| Franchisee Party owns the Site, we may elect to purchase the Site, or lease the Site, from that Franchisee Party. If the Site is leased from an unaffiliated lessor, you must, at our option, cause the applicable Franchisee Party to assign the lease to us or enter into a sublease with us on the same terms. | |||
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
| q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or Sessions that are similar to those offered by a Studio, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") in the United States; (B) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise; (C) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (D) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees and their owners are restricted from engaging in any Competitive Business within the United States.
Specifically, franchisees and their owners cannot own, manage, engage in, be employed by, advise, make loans to, or have any interest in a Competitive Business. A Competitive Business includes sauna studios, salons with sauna offerings, therapeutic light or laser treatment centers, weight loss centers, businesses selling nutritional supplements, businesses involved in self-care, or any business offering similar products, services, or sessions to a Beem Light Sauna studio. This also extends to entities that grant franchises or licenses for these types of businesses.
This non-compete clause is broad, covering the entire United States during the franchise term. After the franchise agreement expires or is terminated, the geographic scope of the non-compete restriction becomes limited to a 10-mile radius of the former Beem Light Sauna studio or any other studio operating or under development at that time.