Can the Operating Principal and Designated Manager for a Beem Light Sauna be changed without approval?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Operating Principal must have at least a 10% ownership interest in your Entity and must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a Designated Manager to manage the day-to-day business of your Studio, who may also be the Operating Principal. The Designated Manager is not required to have an ownership interest in your Entity. You must provide us with written notice of your Operating Principal and Designated Manager at least 60 days prior to opening and may not change your Operating Principal and Designated Manager without our prior approval.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 53–54)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees must obtain prior approval from Beem Light Sauna to change their Operating Principal and Designated Manager. Franchisees are required to provide written notice of their Operating Principal and Designated Manager to Beem Light Sauna at least 60 days before opening their studio.
The Operating Principal must have at least a 10% ownership interest in the franchisee's entity, possess authority over all business decisions related to the studio, and have the power to legally bind the franchisee in dealings with Beem Light Sauna. The Designated Manager is responsible for managing the day-to-day operations of the studio and may also be the Operating Principal, but is not required to have an ownership interest in the franchisee's entity.
This requirement ensures that Beem Light Sauna maintains control over the management and operation of its franchised studios. By requiring prior approval for changes in these key positions, Beem Light Sauna can ensure that individuals in these roles meet their standards and are qualified to manage the studio effectively. This also allows Beem Light Sauna to enforce non-disclosure and non-compete agreements with these individuals, protecting their confidential information and business interests.