What precautions must a Beem Light Sauna franchisee take to protect Proprietary Information?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
10.2 Nondisclosure of Proprietary Information. We and our Affiliates own all right, title, and interest in and to the Proprietary Information. You will not, nor will you permit any person to, use or disclose any Proprietary Information (including without limitation all or any portion of the Manuals) to any other person, except to the extent necessary for your professional advisors and your employees to perform their functions in the operation of the Studio. You acknowledge that your use of the Proprietary Information in any other business would constitute an unfair method of competition with us and our franchisees. You will be liable to us for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom you disclose Proprietary Information. You will take reasonable precautions to protect the Proprietary Information from unauthorized use or disclosure and will implement any systems, procedures, or training programs that we require. At our request, you will require anyone who may have access to the Proprietary Information to execute non-disclosure agreements in a form satisfactory to us that identifies us as a third-party beneficiary of such covenants with the independent right to enforce the agreement.
10.3 Customer Information.
(a) Protection of Customer Information. You must comply with our System Standards, other directions from us, and all Applicable Laws regarding the organizational, physical, administrative and technical measures and security procedures to safeguard the confidentiality and security of Customer Information on your Technology System or otherwise in your possession or control and, in any event, employ reasonable means to safeguard the confidentiality and security of Customer Information. "Customer Information" means names, contact information, financial information and other personal information of or relating to the Studio's customers and prospective customers. If there is a suspected or actual breach of security or unauthorized access involving your Customer Information, you must notify us immediately after becoming aware of such actual or suspected occurrence and specify the extent to which Customer Information was compromised or disclosed. You are responsible for any financial
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 52–53)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees must take several precautions to protect the franchisor's Proprietary Information. Franchisees cannot use or disclose any Proprietary Information to any other person, except when it is necessary for their professional advisors and employees to perform their duties related to operating the Studio. Franchisees must also acknowledge that using the Proprietary Information in any other business would be an unfair method of competition. Franchisees are liable for any unauthorized use or disclosure of Proprietary Information by any employee or other person to whom they disclose it.
To safeguard Proprietary Information, Beem Light Sauna franchisees must take reasonable precautions to protect it from unauthorized use or disclosure. This includes implementing any systems, procedures, or training programs that Beem Light Sauna requires. Additionally, at Beem Light Sauna's request, franchisees must ensure that anyone who may have access to the Proprietary Information, such as officers, directors, Owners, Designated Managers, and employees, executes non-disclosure agreements in a form satisfactory to Beem Light Sauna or its affiliates. Beem Light Sauna is identified as a third-party beneficiary of these agreements, giving them the independent right to enforce the agreement.
These measures are typical in franchising, as franchisors need to protect their trade secrets and operational methods. For a prospective Beem Light Sauna franchisee, this means understanding the importance of confidentiality and being prepared to implement and enforce these protective measures within their franchise. Failure to comply with these requirements could result in liability for unauthorized disclosures and potential legal action from Beem Light Sauna.