Does Beem Light Sauna have any restrictions on assigning the Development Agreement, as stated in Section 7.2?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| j. | Assignment of contract by us | Section 7.2 | No restriction on our right to assign. |
| k. | "Transfer" by you – definition | Section 7.1 | Includes transfer of the Development Agreement, any interest in the Development Agreement, or, if you are an Entity, any direct or indirect controlling equity interest in the Entity. |
| l. | Our approval of transfer by franchisee | Section 7.1 | We have the right to approve or not approve all applicable transfers in our sole discretion. |
| m. | Conditions for our approval of transfer | Section 7.1 | We may require you or the transferee to comply with any conditions that we specify, including payment of a transfer fee and execution of a general release. |
| n. | Our right of first refusal to acquire franchisee's business | Section 7.1 | We have a right of first refusal with respect to the transfer of any interest in you or the Development Agreement, exercisable through the same procedure in the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, there are no restrictions on the company's right to assign the Development Agreement, as detailed in Section 7.2. However, if a franchisee wishes to transfer the Development Agreement, any interest in it, or any controlling equity interest if the franchisee is an entity, this is considered a "transfer" that requires approval from Beem Light Sauna.
Beem Light Sauna has the right to approve or deny any transfer at their sole discretion. Furthermore, Beem Light Sauna can impose conditions on the transfer, such as requiring the franchisee or the transferee to pay a transfer fee or execute a general release.
Beem Light Sauna also retains the right of first refusal to acquire the franchisee's business or any interest in the Development Agreement. This right is exercisable through the same procedure outlined in the Franchise Agreement. This means that before a franchisee can transfer their interest to a third party, they must first offer Beem Light Sauna the opportunity to purchase it on the same terms.