If Beem Light Sauna assumes management of the Studio, can they appoint an affiliate to manage it?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(viii) enter the Studio's premises and assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio. We or our appointee may charge you the Management Fee during the period of management. All funds from the operation of the Studio while we or our appointee assumes its management will be kept in a separate account, and all of the expenses of the Studio will be charged to that account. We or our appointee has a duty to utilize only reasonable efforts and will not be liable to you for any debts, losses, or obligations the Studio incurs, or to any of your creditors for any products or services the Studio purchases, while managing it. You shall not take any action or fail to take any action that would interfere with our or our appointee's exclusive right to manage the Studio and may, in our sole discretion, be prohibited from visiting the Studio so as to not interfere with its operations. Our (or our appointee's) management of the Studio will continue for intervals lasting up to 90 days each (and, in any event, for no more than a total of one year), and we will during each interval periodically discuss the Studio's status with you.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, if Beem Light Sauna assumes management of a franchisee's studio due to certain circumstances, they have the right to appoint a third party, which may include one of their affiliates, to manage the studio. During this period of management, Beem Light Sauna or their appointee may charge the franchisee a Management Fee. All funds generated from the studio's operation during this time will be kept in a separate account, and all studio expenses will be charged to that account.
Beem Light Sauna or their appointee is only required to utilize reasonable efforts in managing the studio and will not be liable to the franchisee for any debts, losses, or obligations the studio incurs while under their management. The franchisee is prohibited from interfering with Beem Light Sauna's or their appointee's management of the studio and may even be restricted from visiting the studio to avoid interference with operations.
The management period by Beem Light Sauna or their appointee will be in intervals lasting up to 90 days each, with a total management period not exceeding one year. During each interval, Beem Light Sauna will periodically discuss the studio's status with the franchisee. This arrangement provides Beem Light Sauna with the flexibility to address operational issues while also keeping the franchisee informed about the studio's progress.