factual

Can Beem Light Sauna interview a franchisee's landlord during an inspection?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

HEREAS, Company and Franchisee are parties to a Franchise Agreement dated | | | | (the "Franchise Agreement"); and | | | | WHEREAS, the Franchise Agreement provides that Franchisee will operate a beem® | | | | Light Sauna Studio ("Studio") at a location that Franchisee selects and Company accepts; and | | | | WHEREAS, Franchisee and Landlord propose to enter into the lease to which this Rider | | | | is attached (the "Lease"), pursuant to which Franchisee will occupy premises located at | | | | (the "Premises") for the purpose of constructing and operating the Studio in accordance with the | | | | Franchise Agreement; and | | |

WHEREAS, the Franchise Agreement provides that, as a condition to Company's authorizing Franchisee to enter into the Lease, the parties must execute this Lease Rider;

NOW, THEREFORE, in consideration of the mutual undertakings and commitments set forth in this Rider and in the Franchise Agreement, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows:

    1. During the term of the Franchise Agreement, Franchisee will be permitted to use the Premises for the operation of the Studio and for no other purpose.
    1. Subject to applicable zoning laws and deed restrictions and to prevailing community standards of decency, Landlord consents to Franchisee's installation and use of such trademarks, service marks, signs, decor items, color schemes, and related components of the beem® Light Sauna system as Company may from time to time prescribe for the Studio.
    1. Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:

Beem Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com

    1. Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the beem® Light Sauna system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the beem® Light Sauna trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision. Company will repair or reimburse Landlord for the cost of any damage to the Premises' walls, floor or ceiling that result from Company's removal of trade dress items and other property from the Premises.
    1. Franchisee will be permitted to assign the Lease to Company or its designee upon the expiration or termination of the Franchise Agreement. Landlord consents to such an assignment and agrees not to impose any assignment fee or similar change, or to increase or accelerate rent under the Lease, in connection with such an assignment.
    1. If Franchisee assigns the Lease to Company or its designee in accordance with the preceding paragraph, the assignee must assume all obligations of Franchisee under the Lease from and after the date of assignment, but will have no obligation to pay any delinquent rent or to cure any other default under the Lease that occurred or existed prior to the date of the assignment.
    1. Franchisee may not assign the Lease or sublet the Premises without Company's prior written consent, and Landlord will not consent to an assignment or subletting by

Source: Item 23 — RECEIPT (FDD pages 71–230)

What This Means (2025 FDD)

Based on the 2025 FDD, while the document outlines several interactions and required agreements between Beem Light Sauna, the franchisee, and the landlord, it does not explicitly state whether Beem Light Sauna has the right to interview a franchisee's landlord during an inspection. However, the Lease Rider included as Appendix D to the Franchise Agreement, details several conditions and rights pertaining to Beem Light Sauna, the franchisee, and the landlord. These conditions primarily focus on the use of the premises, the installation of trademarks and signs, and the communication of notices related to the lease. The Lease Rider also stipulates conditions for assignment or subletting of the lease, modifications to the lease, and the franchisor's right to enter the premises under certain conditions.

Specifically, the Lease Rider mandates that the landlord furnish Beem Light Sauna with copies of all letters and notices sent to the franchisee regarding the lease and premises. This ensures that Beem Light Sauna is kept informed of any issues or communications between the landlord and franchisee. Additionally, the franchisee cannot assign the lease or sublet the premises without Beem Light Sauna's prior written consent, giving Beem Light Sauna a degree of control over the occupancy of the studio. Beem Light Sauna also has the right to enter the premises to make modifications, cure defaults, or remove trade dress items upon termination or expiration of the Franchise Agreement.

While these provisions establish a framework for communication and rights related to the leased premises, the FDD does not explicitly grant Beem Light Sauna the right to interview the landlord. A prospective franchisee should clarify with Beem Light Sauna whether such interviews are permitted or conducted as part of their standard inspection procedures to fully understand the scope of franchisor oversight and landlord interactions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.