What are the obligations of a Beem Light Sauna franchisee after termination, expiration, or transfer of the franchise agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
service marks, signs, decor items, color schemes, and related components of the beem® Light Sauna system as Company may from time to time prescribe for the Studio.
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- Landlord agrees to furnish Company with copies of all letters and notices it sends to Franchisee pertaining to the Lease and the Premises, at the same time it sends such letters and notices to Franchisee. Notice shall be sent to Company by the method(s) as stated in the lease to:
Beem Franchisor LLC Attn: Trevor Lucas, Chief Financial Officer 4000 MacArthur Blvd., Suite 800 Newport Beach, California 92660 Email: trevor@sequelbrands.com
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- Company will have the right, without being guilty of trespass or any other crime or tort, to enter the Premises at any time or from time to time (i) to make any modification or alteration it considers necessary to protect the beem® Light Sauna system and marks, (ii) to cure any default under the Franchise Agreement or under the Lease, or (iii) to remove the distinctive elements of the beem® Light Sauna trade dress upon the Franchise Agreement's expiration or termination. Neither Company nor Landlord will be responsible to Franchisee for any damages Franchisee might sustain as a result of action Company takes in accordance with this provision. Company will repair or reimburse Landlord for the cost of any damage to the Premises' walls, floor or ceiling that result from Company's removal of trade dress items and other property from the Premises.
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- Franchisee will be permitted to assign the Lease to Company or its designee upon the expiration or termination of the Franchise Agreement. Landlord consents to such an assignment and agrees not to impose any assignment fee or similar change, or to increase or accelerate rent under the Lease, in connection with such an assignment.
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- If Franchisee assigns the Lease to Company or its designee in accordance with the preceding paragraph, the assignee must assume all obligations of Franchisee under the Lease from and after the date of assignment, but will have no obligation to pay any delinquent rent or to cure any other default under the Lease that occurred or existed prior to the date of the assignment.
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- Franchisee may not assign the Lease or sublet the Premises without Company's prior written consent, and Landlord will not consent to an assignment or subletting by Franchisee without first verifying that Company has given its written consent to Franchisee's proposed assignment or subletting.
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- Landlord and Franchisee will not amend or modify the Lease in any manner that could materially affect any of the provisions or requirements of this Lease Rider without Company's prior written consent.
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- The provisions of this Lease Rider will supersede and control any conflicting provisions of the Lease.
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- Landlord acknowledges that Company is not a party to the Lease and will have no liability or responsibility under the Lease unless and until the Lease is assigned to, and assumed by, Company.
[Signature page follows]
IN WITNESS WHEREOF, the parties have executed this Lease Rider of the date first above written:
| this Guarantee as of the | day of | , | .
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee has several obligations following the termination, expiration, or transfer of their franchise agreement. Specifically regarding the lease of the premises, Beem Light Sauna has the right to enter the premises to make modifications to protect its system and marks, cure defaults, or remove distinctive elements of the Beem Light Sauna trade dress upon termination or expiration. The franchisor is responsible for repairing any damage caused by the removal of these items. The franchisee is permitted to assign the lease to Beem Light Sauna or its designee upon expiration or termination, and the landlord must consent to this without imposing fees or increasing rent. The assignee, however, is responsible for all lease obligations from the date of assignment but not for any prior defaults. The franchisee cannot assign the lease or sublet the premises without Beem Light Sauna's written consent. Any amendments to the lease must also have Beem Light Sauna's prior written consent.
In the event of a transfer of the franchise, the franchisee must meet several conditions. They must pay the transfer fee, and all monetary and outstanding obligations to Beem Light Sauna, its affiliates, and approved suppliers must be up to date and satisfied. The franchisee and their affiliates must not be in default of any agreement provisions. Additionally, the franchisee and their owners must execute a general release of claims against Beem Light Sauna and its affiliates, and agree to remain liable for obligations arising before the transfer date.
Furthermore, the franchisee and their owners must continue to be bound by intellectual property, proprietary information, indemnification, and non-compete covenants as if the agreement had expired or terminated. The franchisee must also provide written notice from their landlord indicating agreement to transfer the site lease to the new transferee. The proposed transferee must meet all of Beem Light Sauna's current qualifications for franchisees, including not having any involvement with a competitive business. These stipulations ensure Beem Light Sauna maintains control over its brand and standards even after a franchise changes hands or ceases operation.