What is the purpose of the Rider to the Beem Light Sauna Development Agreement for use in Illinois?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
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- Prohibitions on Communicating with Regulators. Any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h).
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- Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
IN WITNESS WHEREOF, each of the undersigned has executed this Agreement under seal as of the Effective Date.
BEEM FRANCHISOR LLC (IF ENTITY): [Name] By: Name: Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE DEVELOPMENT AGREEMENT
RIDER TO THE BEEM FRANCHISOR LLC DEVELOPMENT AGREEMENT FOR USE IN ILLINOIS
THIS RIDER (this "Rider") is made and entered into by and between Beem Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
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- BACKGROUND.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Rider to the Beem Light Sauna Development Agreement for use in Illinois is required when (a) any of the offering or sales activity relating to the Development Agreement occurred in Illinois and the Studios that you will operate and develop under the Development Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois. This rider is signed concurrently with the Development Agreement and annexed to it, becoming a formal part of the agreement.
Additionally, the rider includes a specific clause addressing the Illinois Franchise Disclosure Act. This clause states that any provision that attempts to waive compliance with the Act or any other Illinois law is void. However, the clause does not prevent parties from entering into settlement agreements or executing general releases regarding potential or actual lawsuits filed under the Act, nor does it prevent arbitration of claims under the United States Code.
In practical terms, this means that if a prospective Beem Light Sauna franchisee is located in Illinois or if the franchise sales process occurred there, this rider ensures that the franchisee's rights under Illinois law are protected. It prevents the franchisor from including clauses in the agreement that would force the franchisee to waive those rights. However, it also allows for dispute resolution through settlement or arbitration, which can be a more efficient and cost-effective alternative to litigation.