If Beem Light Sauna requests it, who must a franchisee require to execute non-disclosure agreements?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees must, at Beem Light Sauna's request, require anyone who may have access to the Proprietary Information to execute non-disclosure agreements. These agreements must be in a form satisfactory to Beem Light Sauna, identifying them as a third-party beneficiary with the independent right to enforce the agreement.
This requirement extends to individuals such as the franchisee's employees and professional advisors who, by the nature of their roles, gain access to confidential business information. The purpose is to protect Beem Light Sauna's proprietary information and trade secrets, ensuring they are not used or disclosed in ways that could harm the franchisor or the franchise system.
For a prospective Beem Light Sauna franchisee, this means they must be prepared to implement and enforce non-disclosure agreements with their staff and advisors. This includes providing the agreements, ensuring they are signed, and potentially taking action if a breach of confidentiality occurs. The franchisee is liable for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom the franchisee discloses Proprietary Information. This underscores the importance of carefully managing access to sensitive information and diligently enforcing these agreements to safeguard the Beem Light Sauna system's competitive advantage.