During the period between termination/expiration and purchase, can Beem Light Sauna assume management of the studio?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
(viii) enter the Studio's premises and assume the management of the Studio ourselves or appoint a third party (who may be our Affiliate) to manage the Studio. We or our appointee may charge you the Management Fee during the period of management. All funds from the operation of the Studio while we or our appointee assumes its management will be kept in a separate account, and all of the expenses of the Studio will be charged to that account. We or our appointee has a duty to utilize only reasonable efforts and will not be liable to you for any debts, losses, or obligations the Studio incurs, or to any of your creditors for any products or services the Studio purchases, while managing it. You shall not take any action or fail to take any action that would interfere with our or our appointee's exclusive right to manage the Studio and may, in our sole discretion, be prohibited from visiting the Studio so as to not interfere with its operations. Our (or our appointee's) management of the Studio will continue for intervals lasting up to 90 days each (and, in any event, for no more than a total of one year), and we will during each interval periodically discuss the Studio's status with you.
(c) Exercise of Other Remedies. Our exercise of our rights under Section 14.2(b) (Other Remedies) will not (i) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (ii) constitute an actual or constructive termination of this Agreement, or (iii) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement following our exercise of any of these rights. If we exercise any of our rights under Section 14.2(b), we may thereafter terminate this Agreement without providing you with any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna has the right to assume management of a studio after termination or expiration of the franchise agreement. Beem Light Sauna can enter the premises and manage the studio themselves or appoint a third party, potentially an affiliate, to do so. During this period of management, Beem Light Sauna or its appointee may charge a Management Fee.
Funds generated from the studio's operation during this management period will be kept in a separate account, and all studio expenses will be charged to that account. Beem Light Sauna or its appointee is only required to utilize reasonable efforts in managing the studio and will not be liable for any debts, losses, or obligations the studio incurs during this time. The franchisee is prohibited from interfering with Beem Light Sauna's or its appointee's management of the studio and may be restricted from visiting the studio.
Beem Light Sauna's management of the studio can continue for intervals lasting up to 90 days each, but for no more than a total of one year. During each interval, Beem Light Sauna will periodically discuss the studio's status with the franchisee. The FDD also states that Beem Light Sauna's exercise of these rights does not waive any other obligations of the franchisee under the agreement, nor does it prevent Beem Light Sauna from pursuing other remedies for the franchisee's default. The franchisee must continue to pay all fees and comply with all obligations, and Beem Light Sauna may terminate the agreement without additional cure periods if the default is not resolved.