What happens if a Beem Light Sauna franchisee discloses Proprietary Information?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
10.2 Nondisclosure of Proprietary Information. We and our Affiliates own all right, title, and interest in and to the Proprietary Information. You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio. You acknowledge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees. You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information. You will take reasonable precautions to protect the Proprietary Information from unauthorized use or disclosure and will implement any systems, procedures, or training programs that we require. At our request, you will require anyone who may have access to the Proprietary Information to execute non-disclosure agreements in a form satisfactory to us that identifies us as a third-party beneficiary of such covenants with the independent right to enforce the agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, franchisees are responsible for protecting the brand's Proprietary Information. Beem Light Sauna considers all rights, titles, and interests in the Proprietary Information to be their property. Franchisees cannot use or disclose any Proprietary Information to any other person, except when it is necessary for professional advisors and employees to perform their duties related to operating the studio. This includes, but isn't limited to, the contents of the manuals provided to franchisees.
If a Beem Light Sauna franchisee uses the Proprietary Information in another business, it would be considered an unfair method of competition against the franchisor and other franchisees. The franchisee will be held liable for any unauthorized use or disclosure of Proprietary Information by their employees or anyone else they share the information with.
To protect this information, Beem Light Sauna franchisees must take reasonable precautions to prevent unauthorized use or disclosure. This includes implementing any required systems, procedures, or training programs. At Beem Light Sauna's request, franchisees must also ensure that anyone with access to Proprietary Information signs non-disclosure agreements that specifically identify Beem Light Sauna as a third-party beneficiary, giving them the right to enforce the agreement.