Does Beem Light Sauna guarantee any of the franchisee's obligations to others?
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 10 — FINANCING (FDD page 37)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the franchisor requires a payment and performance guarantee from the franchisee and their owners. Specifically, Appendix C outlines a Payment and Performance Guarantee where the guarantors (franchisee and potentially other parties) jointly and severally unconditionally guarantee to Beem Franchisor LLC the payment and performance of all obligations, indebtedness, and liabilities of the franchisee to the franchisor. This guarantee covers all direct or indirect obligations, whether absolute or contingent, existing now or in the future, including those under the Franchise Agreement.
This means that if the Beem Light Sauna franchisee fails to meet their financial or performance obligations to the franchisor, the guarantors are responsible for fulfilling those obligations. This includes not only payments but also any other requirements outlined in the Franchise Agreement. The guarantors also agree to cover all expenses, including reasonable attorney's fees, incurred in enforcing the guarantee or the payment of any guaranteed liabilities.
Furthermore, the Lease Rider included as Appendix D outlines specific obligations and rights related to the lease of the premises. While it doesn't explicitly state a guarantee of the franchisee's obligations to the landlord, it does include provisions where Beem Franchisor LLC has certain rights, such as entering the premises to protect the Beem Light Sauna system and marks or to cure any default under the Franchise Agreement or the lease. Additionally, the franchisee may be permitted to assign the lease to the company under certain conditions, and the landlord agrees to furnish the company with copies of all letters and notices pertaining to the lease.
Prospective franchisees should carefully review Appendix C and Appendix D, along with the full Franchise Agreement, to understand the scope and implications of the Payment and Performance Guarantee and the Lease Rider. It is essential to consult with legal counsel to fully grasp the obligations and potential liabilities associated with these documents.