Who is the Beem Light Sauna guarantee enforceable by and against?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
on) of this Agreement; and (ii) the area listed above shall be the Territory of this Agreement pursuant to Section 4.2 (Definition of the Territory) of this Agreement. BEEM FRANCHISOR LLC Acknowledged and Agreed:
APPENDIX B TO THE FRANCHISE AGREEMENT
Marks
Registered Marks
Registered on the Principal Register of the United States Patent and Trademark Office:
| Mark | Registration No. | Registration Date |
|---|---|---|
| beem | 6764304 | June 21, 2022 |
| 7301991 | February 13, 2024 |
APPENDIX C TO THE FRANCHISE AGREEMENT
BEEM FRANCHISOR LLC PAYMENT AND PERFORMANCE GUARANTEE
In order to induce Beem Franchisor LLC ("Franchisor") to enter into a beem® Light Sauna Franchise Agreement (the "Franchise Agreement") by and between Franchisor and the Franchisee named in the Franchise Agreement dated _______________ to which this Payment and Performance Guarantee (the "Guarantee") is attached ("Franchisee"), the undersigned (collectively referred to as the "Guarantors" and individually referred to as a "Guarantor") hereby covenant and agree as follows:
- 1. Guarantee of Payment and Performance. The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Payment and Performance Guarantee is put in place to induce Beem Franchisor LLC to enter into a Franchise Agreement with the franchisee. The guarantee is made by the Guarantors, who agree to unconditionally guarantee to the Franchisor and its Affiliates the payment and performance of all obligations of the Franchisee. This includes all indebtedness and liabilities, whether direct or indirect, absolute or contingent.
In practical terms, this means that if the franchisee fails to meet their financial or performance obligations under the Franchise Agreement, the Guarantors are legally bound to fulfill those obligations. This protection extends to all forms of liabilities, ensuring that the Franchisor is protected against potential losses or non-performance by the franchisee. The Guarantors also agree to cover all expenses, including reasonable attorneys' fees, incurred in enforcing the Guarantee or the payment of any Guaranteed Liabilities.
Prospective franchisees should carefully review the Payment and Performance Guarantee and understand the implications of having a Guarantor. Guarantors should also fully understand the Franchise Agreement and seek legal counsel to grasp the full extent of their obligations and potential liabilities under the Guarantee. This ensures that all parties are aware of their responsibilities and the conditions under which the Guarantee can be enforced.