What obligations does a Beem Light Sauna franchisee have upon expiration or termination 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 the 2025 Beem Light Sauna Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Beem Light Sauna has specific rights regarding the premises and assets of the studio. Beem Light Sauna has the right to enter the premises to modify or alter it to protect the Beem Light Sauna system and marks, cure any default under the Franchise Agreement or Lease, or remove distinctive elements of the Beem Light Sauna trade dress. The franchisee is not entitled to damages as a result of these actions, and Beem Light Sauna will cover the costs of repairing damage to the premises resulting from the removal of trade dress items.
Additionally, the franchisee may be permitted to assign the lease to Beem Light Sauna or its designee upon expiration or termination of the Franchise Agreement. The landlord consents to this assignment without any fees or rent increases. If the lease is assigned, the assignee assumes all obligations of the franchisee from the assignment date but is not responsible for any prior defaults. The franchisee cannot assign the lease or sublet the premises without Beem Light Sauna's prior written consent. Any amendments to the lease that materially affect its provisions require Beem Light Sauna's prior written consent. The terms of the Lease Rider supersede any conflicting terms in the lease.
Beem Light Sauna also has the option to purchase the inventory, supplies, operating assets, and other designated assets used in the operation of the studio. To exercise this option, Beem Light Sauna must provide written notice within 15 days after termination or expiration of their intent to conduct due diligence. Beem Light Sauna has the right to exclude any assets from the purchase. The franchisee must provide financial statements and allow inspection of the studio and its assets. If Beem Light Sauna does not exercise its right to operate the studio, it may require the franchisee to continue operating the studio under the terms of the Franchise Agreement until Beem Light Sauna decides not to exercise the option or until the purchase is completed.