What is the name of the lawsuit in which Ryan Junk, CEO of Beem Light Sauna, is named as a defendant?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
ffs' franchise agreement was terminated.
Pending Actions Involving Individuals Listed in Item 2
Ryan Junk, our Chief Executive Officer, previously served as Chief Operating Officer of Xponential and various subsidiaries of Xponential, and Anthony Geisler, the Chief Executive Officer of Sequel Brands, previously served in the same role for Xponential and various subsidiaries of Xponential. They have been named as defendants, along with other officers and employees of Xponential, in the following lawsuits involving Xponential and its affiliates, which involve similar claims and allegations. We are not affiliated with Xponential and these lawsuits do not involve us or our affiliates.
- Dance Fitness Michigan LLC, et al. v. AKT Franchise, LLC, et al., filed August 30, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023-01345433- CU-AT-CXC (the "AKT Lawsuit"). This action was filed by certain former AKT® franchisees and their owners, including Dance Fitness Michigan LLC, Property Maintenance, Inc., 6pk Mason LLC, 6pk Liberty LLC, Teeny Turner LLC, S2 Fitness Enterprises, LLC, Soros & Associates, LLC, AdEdge Services Inc., Deanna Alfredo, Amanda Davis, Nisha Moeller, Samantha Cox, Suzanne Fischer, Nichole Soros, Michael Soros, Paul Dumas, Jodi Dumas and Laura Hannan (collectively, the "AKT Plaintiffs") against (i) AKT Franchise, LLC and AKT Franchise SPV, LLC; (ii) Xponential, Xponential Fitness, Inc., XPOF Assetco, LLC, and Xponential Intermediate Holdings, LLC (collectively, the "Xponential Entities"); (iii) H&W Franchise Intermediate Holdings LLC, H&W Investco LP, and H&W Investco II LP (collectively, the "H&W Entities"); (iv) LAG Fit, Inc.; (v) MGAG LLC; and (vi) Anthony Geisler, Mark Grabowski, Melissa Chordock, Elizabeth "Liz" Batterton Cooper, Alexander Cordova, Lance Freeman, Ryan Junk, Megan Moen, John Meloun, Sarah Luna, Tori Johnston, Justin LaCava, Bobby Tetsch, Brandon Wiles, Jason Losco, Brittney Holobinko, Amy Wehrkamp, Scott Svilich, Sarah Nolan, Emily Brown, Rachel Markovic, and Brenda Morris (collectively, (i) through (vi), the "AKT Defendants") after AKT Franchise, LLC initiated an arbitration against and sought damages from certain of them for breaches of their franchise agreements. The AKT Plaintiffs alleged that one or more of the AKT Defendants (a) violated pre-sale disclosure obligations under the California Franchise Investment Law, the Florida Franchise Act, and the Michigan Franchise Investment Law by failing to provide a compliant Franchise Disclosure Document, making statements that they contend were erroneous or prohibited, and failing to disclose information that they contend necessitated disclosure; (b) fraudulently induced them to invest in franchises; (c) breached the implied covenant of good faith and fair dealing; (d) breached a purported agreement to provide certain financing; and (e) engaged in unfair and deceptive trade practices. The AKT Plaintiffs seek (1) declaratory and injunctive relief regarding the enforcement of the mandatory arbitration provisions in their franchise agreements; (2) rescission of their franchise agreements; (3) actual and special damages; and (4) attorneys' fees, costs, and interest. The AKT Defendants have all filed a demurrer to the complaint.
- Enlightened Armadillo, Inc., et al. v. Yoga Six Franchise, LLC, et al., filed November 22, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023- 01367265-CU-AT-CXC. This action was filed by two Yoga Six® franchisees and their owners, including Enlightened Armadillo, Inc., Snug Holding Company LLC, Mark Hrubant, Ella Hrubant, and Melinda Sung (collectively, the "Y6 Plaintiffs") against (i) Yoga Six Franchise, LLC ("Y6") and Yoga Six Franchise SPV, LLC; (ii) the Xponential Entities; (iii) the H&W Entities; (iv) LAG Fit, Inc.; (v) MGAG LLC;
Source: Item 3 — LITIGATION (FDD pages 13–18)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Ryan Junk, the Chief Executive Officer, is named as a defendant in two lawsuits related to his previous role as Chief Operating Officer of Xponential. These lawsuits, which do not involve Beem Light Sauna, are: Dance Fitness Michigan LLC, et al. v. AKT Franchise, LLC, et al. (the "AKT Lawsuit") and Nickle Acquisition, LLC, et al v. Xponential Fitness, Inc., et al.
The AKT Lawsuit, filed on August 30, 2023, in the Superior Court of the State of California, County of Orange, Case No. 30-2023-01345433- CU-AT-CXC, involves claims and allegations similar to those in other lawsuits against Xponential and its affiliates. The plaintiffs in this case are certain former AKT franchisees and their owners, who allege violations of pre-sale disclosure obligations, fraudulent inducement to invest in franchises, breach of the implied covenant of good faith and fair dealing, breach of a purported agreement to provide certain financing, and unfair and deceptive trade practices. The plaintiffs seek declaratory and injunctive relief, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest.
The Nickle Lawsuit, filed on February 3, 2025, in the Superior Court for the State of California, County of Orange, Case No. 30-2025-01459041- CU-AT-CXC, was filed by a CycleBar® and BFT® franchisee and its owners. The plaintiffs allege violations of pre-sale disclosure obligations, fraudulent inducement to invest in franchises, breach of the Franchise Agreement, breach of the implied covenant of good faith and fair dealing, and fraudulent omissions. They seek declaratory and injunctive relief, rescission of their franchise agreements, actual and special damages, and attorneys' fees, costs, and interest. The defendants are expected to file a demurrer to the complaint.
It is important for a prospective Beem Light Sauna franchisee to understand that these lawsuits are related to Mr. Junk's prior role at Xponential and do not directly involve Beem Light Sauna. However, the nature of these lawsuits, particularly those alleging franchise-related misconduct, may be relevant to a franchisee's assessment of the risks associated with the Beem Light Sauna franchise and the experience and integrity of its leadership.