How can the Interim Period for a Beem Light Sauna franchise be terminated, and what is the required notice period?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee Parties are in full compliance with all Related Agreements, including (i) operating all Studios in compliance with all System Standards (including all minimum quality, service, cleanliness, and/or health and safety standards) and (ii) being current (i.e., not delinquent) with respect to all fees or payments due; and
- (i) You pay to us the Successor Fee (as defined in Section 3.6 (Successor Fee)).
- 2.3 Interim Period. If (i) we have not provided you with written notice that you will not be eligible to enter into a Successor Term, (ii) you and your Owners do not sign and return the Successor Agreements and comply with each of the provisions set forth in Section 2.2 (Successor Term) prior to the expiration of this Agreement, and (iii) you continue to operate the Studio and accept the benefits of this Agreement after the expiration of this Agreement, then, at our option, this Agreement may be treated either as (x) expired as of the date of the expiration of the Term, with you then operating without any authorization to do so, in violation of our rights; or (y) continued on a month-to-month basis (the "Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate 30 days after the other party's receipt of the notice to terminate the Interim Period. The Interim Period shall be considered part of the Term. However, if you enter into a Successor Term, the Successor Term will be deemed to have begun upon expiration of the expired term, rather than the Interim Period.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Interim Period, which occurs if a franchisee continues to operate the studio after the initial agreement expires but before a successor agreement is signed, can be terminated by either party. To end the Interim Period, either Beem Light Sauna or the franchisee must provide the other party with written notice of their intent to terminate.
The termination becomes effective 30 days after the other party receives the termination notice. This means that Beem Light Sauna franchisees must continue to operate under the terms of the original agreement for those 30 days, and Beem Light Sauna must also honor its obligations during this period.
It is important to note that during the Interim Period, specifically beginning on the 30th day, the monthly Royalty Fee increases to 10% of the studio's Gross Sales. This higher fee applies each week until the franchisee either secures a Successor Term by meeting all necessary conditions, including executing the Successor Agreements, providing a general release, and paying the Successor Fee, or until the Interim Period is terminated. Beem Light Sauna retains all rights and remedies under the original agreement, including the right to terminate the agreement, even while accepting the increased Royalty Fees.