Does Beem Light Sauna require franchisees to maintain insurance at all times?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
one of our or Sequel Brands' officers own an interest in other, unaffiliated suppliers with whom you are required or recommended to do business.
Insurance. You must obtain before you begin construction and/or development of the Studio and must maintain at all times the types of insurance and the minimum policy limits specified in the Manuals. Currently, we require you to obtain and maintain: Comprehensive General Liability and Professional Liability Insurance. You must maintain comprehensive general liability and professional liability insurance with the following minimum limits:
- Each Occurrence: $1,000,000
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–36)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees are required to maintain specific types of insurance coverage at all times. This requirement begins before construction or development of the studio. The specific types of insurance Beem Light Sauna franchisees must maintain include Comprehensive General Liability and Professional Liability Insurance.
The minimum coverage limits for Comprehensive General Liability and Professional Liability Insurance are set at $1,000,000 for each occurrence, $5,000,000 for the general aggregate (per studio), $5,000,000 for products completed operations aggregate, and $1,000,000 for personal and advertising injury. Franchisees must also maintain property insurance, employment practices liability insurance, automobile liability insurance (if vehicles are used), and workers' compensation insurance.
Beem Light Sauna specifies that all insurance carriers must have a rating of A or higher from A.M. Best and Company, Inc. The insurance policies must be effective by the deadlines specified by Beem Light Sauna. Coverage must be on an "occurrence" basis, except for employment practices liability insurance, which is on a "claims made" basis. Beem Light Sauna must be named as an additional insured under each policy. Franchisees must provide certificates of insurance evidencing the required coverage upon request. Beem Light Sauna retains the right to require additional types of coverage or increase the required minimum amount of coverage with 60 days' notice.