Regarding pre-litigation mediation and arbitration for Beem Light Sauna franchises in Indiana, are the provisions requiring these actions to be brought in Newport Beach, California, always enforceable under Indiana law?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, the enforceability of pre-litigation mediation and arbitration provisions within the franchise agreement may be limited under Indiana law. Specifically, the franchise agreement stipulates that any pre-litigation mediation and arbitration must occur in the metropolitan area where Beem Light Sauna's principal place of business is located, which is currently Newport Beach, California.

However, the disclosure explicitly states that these provisions, which mandate that mediation and arbitration take place in Newport Beach, California, might not be enforceable under Indiana law. This means that an Indiana franchisee may have the right to mediate or arbitrate disputes closer to their business location or in a manner consistent with Indiana law, despite what the franchise agreement initially dictates.

This disclosure serves as a critical point for prospective Beem Light Sauna franchisees in Indiana, suggesting they consult with legal counsel to fully understand their rights under Indiana's Deceptive Franchise Practices Law. This law generally governs the relationship between franchisors and franchisees, forbidding certain provisions in franchise agreements that could be considered coercive or oppressive. If any part of the Franchise Agreement conflicts with Indiana law, Indiana law will take precedence.