Does the Beem Light Sauna guarantee specify a geographic limit to the Development Area?
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)
The 2025 Beem Light Sauna Franchise Disclosure Document includes a Payment and Performance Guarantee as Appendix C to the Franchise Agreement. This guarantee ensures the franchisee meets their financial and operational obligations. However, the excerpt provided does not specify any geographic limitations related to the Development Area within the Payment and Performance Guarantee.
While the guarantee itself doesn't mention geographic limits, Section 5 of a separate agreement excerpt discusses noncompete restrictions after the franchise association ends. This section states that for two years post-association, the franchisee is restricted from engaging in a Competitive Business within a 10-mile radius of their Studio or any other Beem Light Sauna Studio operating or under development at the time of termination.
Therefore, while a geographic limit is imposed concerning post-term non-compete obligations, the Payment and Performance Guarantee itself does not define or restrict the Development Area geographically. A prospective franchisee should review the full franchise agreement and related exhibits to fully understand the defined Development Area and any geographic restrictions that may apply during the term of the agreement.