Where must litigation for excepted disputes under the Beem Light Sauna agreement be filed?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, litigation for excepted disputes must be filed exclusively in the United States District Court for the district in which Beem Light Sauna has its principal place of business at the time of filing. If federal jurisdiction cannot be obtained, the litigation must be filed in the state court in which Beem Light Sauna has its principal place of business at the time of filing. The franchisee irrevocably consents to these courts' jurisdiction.

For a prospective Beem Light Sauna franchisee, this means that if a dispute arises that falls under the "excepted disputes" category and litigation is necessary, they may have to litigate in the federal or state courts where Beem Light Sauna's principal place of business is located. This could mean incurring travel costs, hiring local counsel, and dealing with unfamiliar court procedures, depending on where the franchisee's Beem Light Sauna location is.

The types of disputes that Beem Light Sauna excepts from arbitration include those arising under or related to the Lanham Act, disputes related to the ownership or validity of any of Beem Light Sauna's intellectual property, disputes involving the enforcement of Beem Light Sauna's intellectual property rights or protection of its proprietary information, or disputes related to the payment of sums the franchisee owes to Beem Light Sauna or its affiliates.

This clause is important for prospective franchisees to consider, as it dictates the venue and jurisdiction for specific types of legal disputes, potentially adding to the cost and complexity of resolving such disputes. Franchisees should seek legal counsel to fully understand the implications of this clause.