What section of the Beem Light Sauna franchise agreement covers Transfer and Assignment?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
7. Transfers.
7.1 Transfers by You. This Agreement and the rights granted to you under this Agreement are personal to you. Neither this Agreement, nor any of the rights granted to you hereunder, nor any controlling equity interest in you may be voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, assigned or otherwise transferred, given away, or encumbered by you without our prior written approval, which we may grant or withhold for any or no reason.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Section 7.1 of the franchise agreement addresses the transfer of the agreement and associated rights. It explicitly states that the franchise agreement and the rights granted to the franchisee are personal and cannot be assigned, transferred, or encumbered without the prior written approval of Beem Light Sauna. This approval can be withheld for any reason.
This clause means that a Beem Light Sauna franchisee cannot sell, give away, or otherwise transfer their franchise to another party without first obtaining permission from Beem Light Sauna. This gives Beem Light Sauna significant control over who operates its franchises and ensures that any new franchisee meets their standards and qualifications.
This requirement is typical in franchising, as franchisors want to maintain brand consistency and protect their trademarks by carefully vetting potential franchisees. A prospective Beem Light Sauna franchisee should understand that exiting the business through a sale or transfer may not be straightforward and is subject to the franchisor's discretion.