Does Beem Light Sauna have the right to deny approval of a supplier based solely on their judgment?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
or promotional allowances received from suppliers and/or distributors, you must report to us the details of the arrangement and such revenue shall be included as part of your Gross Sales.
- (d) Approval Process. If you would like to offer products, services, or Sessions or use any supplies, Operating Assets, or services that we have not approved or to purchase or lease from a supplier or service provider that we have not approved, you must submit
a written request for approval and provide us with any information that we request. We have the right to inspect the proposed supplier's facilities and test samples of the proposed products and to evaluate the proposed service provider and the proposed service offerings. We may require the proposed supplier or service provider to visit our headquarters, currently in Chicago, Illinois, to evaluate the proposed supplier or service provider in person. You agree to pay us a charge that is equal to the greater of $1,000 or our and our affiliates' actual costs and expenses related to the inspection and/or testing the proposed product or evaluating the proposed service or service provider, including personnel and travel costs, whether or not the item, service, supplier, or service provider is approved. We have the right to grant, deny, or revoke approval of products, services, suppliers, or service prov
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 retains the right to make supplier approval decisions based on their own judgment. As a prospective franchisee, this means that Beem Light Sauna has the authority to approve or deny any supplier you propose, and they can do so using their own criteria. This extends to products, services, and service providers.
Before a franchisee can use a supplier, they must submit a written request for approval and provide any information Beem Light Sauna requests. Beem Light Sauna can inspect the supplier's facilities, test product samples, and evaluate service providers. The franchisee may be required to pay a charge equal to $1,000 or Beem Light Sauna's actual costs for the inspection and/or testing, regardless of whether the supplier is approved. Beem Light Sauna will provide a written decision, but if no response is received within 30 days of submitting all requested information, the request is considered disapproved.
Beem Light Sauna also reserves the right to revoke approval of any previously approved supplier if they fail to meet the company's current criteria. If approval is revoked, the franchisee must cease purchasing from the supplier and dispose of any remaining inventory as directed by Beem Light Sauna. The franchisee may be given a limited time (up to 30 days) to sell off existing inventory, but Beem Light Sauna can shorten this period if they believe continued sales would harm their reputation.
This level of control over suppliers is common in franchising to maintain brand consistency and quality control. However, it's important for a prospective Beem Light Sauna franchisee to understand that they may incur costs for supplier evaluations and that Beem Light Sauna ultimately has the final say in which suppliers they can use.