Is the Nondisclosure and Noncompete Agreement included as an exhibit to the Beem Light Sauna Disclosure Document?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT H TO THE FRANCHISE DISCLOSURE DOCUMENT
Form of Nondisclosure and Noncompete Agreement (attached)
NONDISCLOSURE AND NONCOMPETE AGREEMENT
This Agreement is dated [DATE]. The parties are [NAME OF FRANCHISEE] (referred to as "we", "us", and "our"), located at [ADDRESS], and [NAME OF EMPLOYEE OR INDEPENDENT CONTRACTOR] (referred to as "you" and "your"). You are signing this Agreement in consideration of, and as a condition to, your association with us and the compensation, dividends, or other payments and benefits you will receive from us.
BACKGROUND
We are a franchisee of Beem Franchisor LLC ("Franchisor") under a Franchise Agreement dated [DATE] (the "Franchise Agreement"), pursuant to which Franchisor granted us the right to operate a franchised business (the "Studio") under the "beem® Light Sauna" name (the "Brand"). We have a license to use the Brand and certain other trademarks designated by Franchisor (collectively, the "Marks"), certain policies and procedures used in the operation of the Studios (the "System"), and the confidential information developed and owned by Franchisor and its affiliates in our Studio. Franchisor recognizes that, in order for us to effectively operate our business, our employees and independent contractors whom we retain must have access to certain confidential information and trade secrets owned by Franchisor. Disclosure of this confidential information and trade secrets to unauthorized persons, or its use for any purpose other than the operation of our Studio, would harm Franchisor, other franchise owners, and us. Accordingly, Franchisor requires us to have you sign this Agreement.
AGREEMENT
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Nondisclosure and Noncompete Agreement is included as Exhibit H to the FDD. This agreement is attached to the document, meaning prospective franchisees can review the terms and conditions of the agreement before entering into a franchise agreement.
The Nondisclosure and Noncompete Agreement outlines the obligations of the franchisee (referred to as "we," "us," and "our") and their employees or independent contractors (referred to as "you" and "your") regarding confidential information and trade secrets. It states that the employee or contractor is signing the agreement as a condition of their association with the franchisee and in consideration of the compensation and benefits they will receive.
The agreement acknowledges that Beem Light Sauna, the franchisor, recognizes that the franchisee's employees and independent contractors must have access to confidential information and trade secrets to effectively operate the business. It emphasizes that disclosing this information to unauthorized persons or using it for purposes other than operating the studio would harm the franchisor, other franchise owners, and the franchisee. Therefore, the franchisor requires the franchisee to have their employees and independent contractors sign the agreement.
As a prospective franchisee, it is important to carefully review Exhibit H, the Nondisclosure and Noncompete Agreement, to understand the obligations and restrictions it places on your employees and independent contractors. You should also ensure that your employees and contractors understand the terms of the agreement before they sign it. This will help protect the confidential information and trade secrets of Beem Light Sauna and prevent potential legal issues.