For Beem Light Sauna, what does the guarantee of payment and performance specifically cover?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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 Beem Light Sauna's 2025 Franchise Disclosure Document, the Payment and Performance Guarantee covers the guarantor's commitment to ensure the franchisee meets all financial and operational obligations to Beem Franchisor LLC. This guarantee is put in place to encourage the franchisor to enter into a franchise agreement with the franchisee.
Specifically, the guarantor(s) unconditionally guarantee the payment and performance of all obligations, indebtedness, and liabilities of the franchisee to Beem Light Sauna. This includes any direct or indirect debts, whether absolute or contingent, that currently exist or may arise in the future. These obligations can stem from the Franchise Agreement itself or any other agreement, including any extensions, renewals, or modifications.
In practical terms, if a Beem Light Sauna franchisee fails to meet their financial or performance obligations, the guarantor(s) are immediately responsible for fulfilling those obligations. Furthermore, the guarantor(s) are liable for all expenses, including reasonable attorney's fees, incurred by Beem Light Sauna in enforcing the guarantee or recovering any guaranteed liabilities. The guarantors confirm they have reviewed the Franchise Agreement and consulted with counsel to fully understand their obligations under the agreement and the guarantee.