Can Beem Light Sauna require a franchisee's employees to sign non-disclosure agreements?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We are a franchisee of Beem Franchisor LLC ("Franchisor") under a Franchise Agreement dated [DATE] (the "Franchise Agreement"), pursuant to which Franchisor granted us the right to operate a franchised business (the "Studio") under the "beem® Light Sauna" name (the "Brand"). We have a license to use the Brand and certain other trademarks designated by Franchisor (collectively, the "Marks"), certain policies and procedures used in the operation of the Studios (the "System"), and the confidential information developed and owned by Franchisor and its affiliates in our Studio. Franchisor recognizes that, in order for us to effectively operate our business, our employees and independent contractors whom we retain must have access to certain confidential information and trade secrets owned by Franchisor. Disclosure of this confidential information and trade secrets to unauthorized persons, or its use for any purpose other than the operation of our Studio, would harm Franchisor, other franchise owners, and us. Accordingly, Franchisor requires us to have you sign this Agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Light Sauna requires franchisees to have their employees and independent contractors sign a non-disclosure agreement. This is because these individuals will have access to confidential information and trade secrets owned by Beem Light Sauna.
The FDD emphasizes that the disclosure of this confidential information to unauthorized persons, or its use for purposes other than operating the Beem Light Sauna studio, would be detrimental to Beem Light Sauna, its other franchisees, and the franchisee themselves. By requiring these agreements, Beem Light Sauna aims to protect its brand, system, and proprietary information.
For a prospective Beem Light Sauna franchisee, this means they must ensure that all employees and independent contractors sign the required non-disclosure agreements. This is a condition set by Beem Light Sauna to protect its interests and maintain the integrity of its business operations. Failure to comply with this requirement could potentially lead to breaches of contract and legal repercussions.