During the period after termination but before Beem Light Sauna purchases the assets, can Beem Light Sauna assume management of the Studio?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not exercise our right to operate the Studio, we may require you to continue to operate the Studio in accordance with this Agreement during the period between the expiration or termination of this Agreement through (i) the date on which we decide to decline our right to exercise this option (or the expiration of the option, if we fail to provide an Exercise Notice by the deadline) or (ii) the closing of our purchase.
However, we may, at any time during that period, assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio pursuant to the terms of Section 15.6 (Our Right to Operate).
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Light Sauna has the right to assume management of the studio during the period after termination or expiration of the franchise agreement, but before the completion of the asset purchase. Specifically, if Beem Light Sauna does not exercise its right to operate the studio, it may require the franchisee to continue operating the studio according to the agreement until Beem Light Sauna decides not to exercise its option to purchase the assets or until the purchase is closed.
However, Beem Light Sauna retains the right to assume management of the studio itself or appoint a third party to manage it at any time during this period, according to the terms in Section 15.6, titled "Our Right to Operate." This provision ensures that Beem Light Sauna can maintain control over the studio's operations and protect its interests during the transition period.
This arrangement has significant implications for a franchisee. Even after termination, the franchisee might be required to continue operating the studio, or Beem Light Sauna could step in to manage it. The franchisee needs to be aware that Beem Light Sauna's decision to manage the studio can occur at any point during the period between termination/expiration and the completion of the asset purchase, potentially impacting the franchisee's involvement and revenue during that time.