What qualifications must a proposed Beem Light Sauna transferee demonstrate to be approved, including involvement with competitive businesses?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, a proposed transferee must meet several qualifications to be approved. The transferee (or all owners if the transferee is not an individual) must demonstrate to Beem Light Sauna's satisfaction that they meet all then-current qualifications to become a franchisee. This includes not having any involvement with a Competitive Business.

A "Competitive Business" is defined as (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or Sessions that are similar to those offered by a Studio, and/or (iii) any entity that grants franchises or licenses for any of the businesses in (i) or (ii).

In addition to not having involvement with a Competitive Business, the transferring franchisee must pay Beem Light Sauna the Transfer Fee, and all monetary and other obligations to Beem Light Sauna, its Affiliates, and approved suppliers must be up to date, fully paid, and satisfied. Neither the franchisee nor its Affiliates can be in default of any provision of the Franchise Agreement or any Related Agreements. The franchisee and their Owners must execute a general release of claims against Beem Light Sauna and agree to remain liable for all obligations to Beem Light Sauna arising before the transfer date. They must also continue to be bound by the noncompete covenants as if the agreement had expired. Finally, the franchisee must provide written notice from their landlord indicating that the landlord has agreed to transfer the Site Lease to the transferee.