What kind of competition might a Beem Light Sauna franchisee face, even with a Territory?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
block. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory. Except as stated in the preceding sentence, we and our affiliates have the right to conduct any business activities, under any name, in any geographic area, at any location, regardless of the proximity to or effect on your Studio. For example, we and our affiliates have the right to:
- (1) establish, or license others to operate, Studios or Sessions operating under the Marks and System at Non-Traditional Locations anywhere, including inside and outside the Territory. A "Non-Traditional Location" is a site that is located within a larger venue or facility that is likely to draw at least 75% of its customers from people who use such larger facility, including big box gyms and fitness facilities, cruise ships, military bases, college campuses, airports, sports or entertainment venues, hotels or resorts, theme parks, industrial or office complexes, train stations and other transportation facilities, travel plazas, casinos, hospitals, multi-unit residential properties, and other similar captive market locations;
- (2) establish, or license others to establish, studios or businesses offering similar or identical products, services, classes, and programs and using the System or elements of the System (i) under the Marks anywhere outside of the Territory, or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Territory;
- (3) sell or offer, or license others to sell or offer, any products, services, or Sessions using the Marks or other marks through any alternative distribution channels, including through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Territory;
- (4) advertise, or authorize others to advertise, using the Marks anywhere, including inside and outside of the Territory; and
- (5) acquire, be acquired by, or merge with other companies with existing studios or businesses anywhere (including inside or outside of the Territory) and, even if such businesses are located in the Territory, (i) convert the other businesses to the Brand, (ii) permit the other businesses to continue to operate under another name, and/or (iii) permit the businesses to operate under another name and convert existing Studios to such other name.
Source: Item 12 — TERRITORY (FDD pages 47–51)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee may face competition from several sources, even within their designated territory. The FDD clearly states that franchisees will not receive an exclusive territory. This means that other franchisees, outlets owned by Beem Light Sauna, other distribution channels, and competitive brands that Beem Light Sauna controls could all operate in the same area.
Specifically, Beem Light Sauna and its affiliates retain the right to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's studio or the impact on that studio. This includes the right to establish or license studios or businesses offering similar services at "Non-Traditional Locations" such as gyms, cruise ships, military bases, college campuses, airports, hotels, and casinos, even within a franchisee's territory. Beem Light Sauna also reserves the right to sell products and services through alternative distribution channels like e-commerce, retail stores, and online videos, which could compete with a franchisee's business.
Furthermore, Beem Light Sauna can advertise anywhere, including inside a franchisee's territory, and can acquire or merge with other companies that have existing studios, even within the territory. These acquired businesses could be converted to Beem Light Sauna franchises or continue to operate under a different name. These competitive activities could impact a franchisee's business, and Beem Light Sauna is not obligated to compensate franchisees for any negative impact resulting from these activities within their territory. Therefore, while a franchisee has some territorial protection, it is limited and subject to significant potential competition from various sources affiliated with or controlled by Beem Light Sauna.