What happens if the proposed transferee of a Beem Light Sauna franchise is not an individual?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(j) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must (i) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge and guarantee all of your obligations under this Agreement and (ii) must execute our then-current form of personal guarantee;
(k) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must execute, for a term ending on the last day of the existing Term and with such Successor Term as is provided by this Agreement, our then-current franchise agreement for new franchisees and such other agreements as we may require, which agreements will supersede this Agreement in all respects.
The terms of the new franchise agreement may differ significantly from the terms of this Agreement, including different fees.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, if the proposed transferee is not an individual, certain owners of the legal or beneficial interest in the transferee may be required to take specific actions. These actions include entering into a written assignment, in a form satisfactory to Beem Light Sauna, assuming and agreeing to discharge and guarantee all of the obligations under the Franchise Agreement. Additionally, these owners may be required to execute Beem Light Sauna's then-current form of personal guarantee.
Furthermore, these owners may have to execute Beem Light Sauna's then-current franchise agreement for new franchisees, along with any other agreements that Beem Light Sauna may require. This new franchise agreement would be for a term ending on the last day of the existing term, including any successor terms provided by the agreement, and it would supersede the original agreement in all respects. It is important to note that the terms of the new franchise agreement could differ significantly from the original agreement, potentially including different fees.
In summary, if the transferee is not an individual, Beem Light Sauna requires certain individuals with legal or beneficial interest in the transferee to assume the obligations, provide guarantees, and potentially enter into a new franchise agreement. This ensures that Beem Light Sauna has recourse to individuals who are responsible for the transferee entity's performance and compliance with the franchise agreement.