What are the restrictions on using or disclosing Beem Light Sauna's Proprietary Information?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
y or in writing, certain trade secrets, know-how, and other confidential information relating to the System, our business, the businesses of our franchisees, our vendor relationships, our Sessions, or the construction, management, operation, or promotion
of the Studio (collectively, "Proprietary Information"). You may not, nor may you permit any person or Entity to, use or disclose any Proprietary Information (including any portion of the Manuals) to any other person, except to the extent necessary for your employees to perform their functions in the operation of your Studio. You must take reasonable precautions necessary to protect Proprietary Information from unauthorized use or disclosure, including conducting orientation and training programs for your employees to inform them of your obligation to protect Proprietary Information and their related responsibilities and obligations. If we or our affiliates so request, you must obtain from your officers, directors, Owners, Designated Managers, and employees confidentiality agreements in a form satisfactory to us or our affiliates. You will be responsible for any unauthorized disclosure of Proprietary Information by any person to whom you have disclosed Proprietary Information.
The Development Agreement does not grant you rights to use any intellectual property. These rights arise only under Franchise Agreements you sign with us.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
At all times that your Studio is open for business, it must be under the personal, onpremises supervision of a Required Trainee. Your Required Trainees must successfully complete our training program and any other training programs that we may require. You may not permit your Studio to be operated, managed, directed, or controlled by any other person without our prior written consent.
Your Operating Principal must have at least a 10% ownership interest in your Entity and must have authority over all business decisions related to your Studio and must have the power to bind you in all dealings with us. In addition, you must appoint a Designated Manager to manage the day-to-day business of your Studio, who may also be the Operating Principal. The Designated Manager is not required to have an ownership interest in your Entity.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 52–53)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees face specific restrictions regarding the use and disclosure of proprietary information. Franchisees are prohibited from using or disclosing any proprietary information, including any portion of the manuals, to any other person or entity. The only exception is to the extent necessary for their employees to perform their job functions in operating the studio.
Beem Light Sauna requires franchisees to take reasonable precautions to protect proprietary information from unauthorized use or disclosure. This includes conducting orientation and training programs for employees to inform them of their obligations to protect such information and their related responsibilities. Beem Light Sauna also has the right to request franchisees to obtain confidentiality agreements from their officers, directors, owners, designated managers, and employees in a form satisfactory to Beem Light Sauna or its affiliates.
Franchisees are responsible for any unauthorized disclosure of proprietary information by any person to whom they have disclosed it. The FDD states that franchisees acknowledge that using the proprietary information in any other business would constitute an unfair method of competition with Beem Light Sauna and its franchisees. Franchisees will be liable for any unauthorized use or disclosure of proprietary information by any employee or other person to whom they disclose the information. At Beem Light Sauna's request, franchisees will require anyone who may have access to the proprietary information to execute non-disclosure agreements in a form satisfactory to them that identifies them as a third-party beneficiary of such covenants with the independent right to enforce the agreement.