Is Beem Light Sauna obligated to make payments for Innovations?

According to the 2025 Beem Light Sauna FDD, Beem Light Sauna is not obligated to make any payments to franchisees or any other person regarding any innovations related to a Studio or the System. The FDD defines "Innovations" as ideas, concepts, techniques, or materials relating to a Studio or the System, regardless of whether they are protectable intellectual property and regardless of who created them.

Beem Light Sauna considers all Innovations to be their sole and exclusive property, part of the System and the Intellectual Property, and works made-for-hire. Franchisees are required to promptly disclose any Innovations to Beem Light Sauna. If an Innovation does not qualify as a work made-for-hire, the franchisee must assign ownership of the Innovation and all related rights to Beem Light Sauna. Franchisees (and their Owners, employees, and contractors) must sign any documents Beem Light Sauna requests to evidence their ownership or to help them obtain intellectual property rights in the Innovation.

This means that if a franchisee develops a new technique, concept, or material related to the Beem Light Sauna studio or system, they must disclose it to the franchisor, and Beem Light Sauna will own it without any obligation to compensate the franchisee. The franchisee is also prohibited from using any Innovation in operating the Studio without Beem Light Sauna's prior approval. This clause emphasizes Beem Light Sauna's control over the System and its components, ensuring uniformity and protecting its intellectual property.