If a Beem Light Sauna franchisee is domiciled in Maryland, does this Rider apply?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ON 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
- 5. ILLINOIS FRANCHISE DISCLOSURE ACT. The following is added as Section 16.10 of the Franchise Agreement:
- 16.10 Illinois Franchise Disclosure Act. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Act or any other law of Illinois is void. However, that Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any provision of the Act,
nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code.
IN WITNESS WHEREOF, each of the undersigned has executed this Agreement under seal as of the Effective Date.
BEEM FRANCHISOR LLC (IF ENTITY): [Name] Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND
THIS RIDER (this "Rider") is made and entered into by and between Beem Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
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- BACKGROUND. We and you are parties to that certain Franchise Agreement dated __________________________, 20___ (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are domiciled in Maryland, and/or (b) the Studio that you will operate under the Franchise Agreement will be located in Maryland.
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- RELEASES. The following is added to the end of Sections 2.2(d) ("Successor Term"), 13.4(d) ("Control Transfer"), 13.5 ("Non-Control Transfers"), 13.6 ("Transfer To an Entity"), and 15.7(d) ("Closing") of the Franchise Agreement:
The general release required as a condition of renewal, sale and/or assignment/transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
- GOVERNING LAW.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, there is a specific rider to the franchise agreement for use in Maryland. This rider is applicable if the franchisee is domiciled in Maryland, or if the Beem Light Sauna studio operated under the franchise agreement is located in Maryland.
The Rider includes modifications to sections of the standard franchise agreement. Specifically, it amends sections regarding successor terms, control transfers, non-control transfers, transfers to an entity, and closing conditions. The amendment stipulates that the general release required as a condition of renewal, sale, or transfer will not apply to any liability arising under the Maryland Franchise Registration and Disclosure Law.
Additionally, the Rider modifies the governing law section of the franchise agreement to state that Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law, to the extent required by applicable law. It also addresses consent to jurisdiction, ensuring that the franchisee's right to bring a lawsuit in Maryland for claims arising under that law is not affected, subject to arbitration obligations. Furthermore, the Rider states that any limitation of claims will not reduce the three-year statute of limitations afforded to the franchisee for bringing a claim under the Maryland Franchise Registration and Disclosure Law.