What is the purpose of the guarantee required by Beem Light Sauna for a Development Agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
on) of this Agreement; and (ii) the area listed above shall be the Territory of this Agreement pursuant to Section 4.2 (Definition of the Territory) of this Agreement. BEEM FRANCHISOR LLC Acknowledged and Agreed:
APPENDIX B TO THE FRANCHISE AGREEMENT
Marks
Registered Marks
Registered on the Principal Register of the United States Patent and Trademark Office:
| Mark | Registration No. | Registration Date |
|---|---|---|
| beem | 6764304 | June 21, 2022 |
| 7301991 | February 13, 2024 |
APPENDIX C TO THE FRANCHISE AGREEMENT
BEEM FRANCHISOR LLC PAYMENT AND PERFORMANCE GUARANTEE
In order to induce Beem Franchisor LLC ("Franchisor") to enter into a beem® Light Sauna Franchise Agreement (the "Franchise Agreement") by and between Franchisor and the Franchisee named in the Franchise Agreement dated _______________ to which this Payment and Performance Guarantee (the "Guarantee") is attached ("Franchisee"), the undersigned (collectively referred to as the "Guarantors" and individually referred to as a "Guarantor") hereby covenant and agree as follows:
- 1. Guarantee of Payment and Performance. The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Appendix C to the Franchise Agreement outlines the Payment and Performance Guarantee. This guarantee is required by Beem Franchisor LLC to induce them to enter into a Beem Light Sauna Franchise Agreement with the franchisee. The guarantee is attached to the Franchise Agreement and serves as a covenant between the undersigned Guarantors and Beem Franchisor LLC.
The Payment and Performance Guarantee ensures that the Guarantors jointly and severally unconditionally guarantee to Beem Franchisor LLC and its Affiliates the payment and performance when due of all obligations, indebtedness, and liabilities of the Franchisee. This includes direct or indirect, absolute or contingent liabilities of every kind and nature, whether existing now or incurred in the future. These Guaranteed Liabilities may arise from the Franchise Agreement or otherwise, including any extensions, renewals, or modifications.
In practical terms, this means that if the Beem Light Sauna franchisee fails to meet their financial or performance obligations, the Guarantors are legally bound to fulfill those obligations immediately. Furthermore, the Guarantors are responsible for covering all expenses, including reasonable attorneys' fees, incurred in enforcing the Guarantee or securing payment of any Guaranteed Liabilities. The document also states that the Guarantors have reviewed a copy of the Franchise Agreement and had the opportunity to consult with counsel to understand the meaning and implications of both the Franchise Agreement and the Guarantee.