What happens if Beem Light Sauna fails to provide an Exercise Notice by the deadline?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Operations Pending Purchase.
If we do not exercise our right to operate the Studio, we may require you to continue to operate the Studio in accordance with this Agreement during the period between the expiration or termination of this Agreement through (i) the date on which we decide to decline our right to exercise this option (or the expiration of the option, if we fail to provide an Exercise Notice by the deadline) or (ii) the closing of our purchase.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, if the franchise agreement is terminated for any reason other than the franchisee terminating it, or if the agreement expires without a successor agreement being signed, Beem Light Sauna has the option to purchase the assets of the studio. To begin this process, Beem Light Sauna must provide the franchisee with a written Exercise Notice within 15 days of the termination or expiration date, indicating their intent to perform due diligence.
If Beem Light Sauna does not provide this Exercise Notice by the specified deadline, the franchisee may continue to operate the studio. This operation must be in accordance with the existing franchise agreement. This period extends from the agreement's expiration or termination date until either Beem Light Sauna decides not to exercise its purchase option or the option expires due to the missed deadline.
This clause protects the franchisee by ensuring they can continue operating the business if Beem Light Sauna misses the deadline to express interest in purchasing the studio's assets. It also obligates the franchisee to maintain operations under the terms of the franchise agreement during this interim period, ensuring consistency and adherence to Beem Light Sauna's standards until a final decision is made regarding the studio's future.