Which sections of the Beem Light Sauna agreement survive the expiration, termination, or transfer of the agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
17.8 Survival. Each provision of this Agreement that expressly or by reasonable implication is to be performed, in whole or in part, after the expiration, termination, or Transfer of this Agreement will survive such expiration, termination, or Transfer, including Sections 9 (Intellectual Property), 10 (Proprietary Information), 11 (Indemnification), 12 (Noncompete Covenants), and 15 (Your Obligations Upon Expiration or Termination).
(f) You and your Owners must continue to be bound by the provisions of Sections 9 (Intellectual Property), 10 (Proprietary Information), 11 (Indemnification), and 12 (Noncompete Covenants) as if they were the Franchisee and this Agreement had expired or terminated as of the effective date of the Transfer;
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, certain provisions of the franchise agreement continue even after the agreement expires, is terminated, or is transferred. Specifically, Section 17.8 states that any provision that, either explicitly or implicitly, requires performance after the agreement's end will remain in effect. This includes Sections 9, 10, 11, 12, and 15, which cover intellectual property, proprietary information, indemnification, noncompete covenants, and franchisee obligations upon expiration or termination, respectively.
Additionally, Section 16.3(f) outlines that in the event of a transfer, the franchisee and their owners must continue to adhere to Sections 9, 10, 11, and 12, as if the agreement had expired or terminated. This ensures that even after a transfer, the original franchisee remains bound by the intellectual property, confidentiality, indemnification, and non-compete obligations.
This survival of obligations is a common practice in franchising to protect the franchisor's brand, trade secrets, and competitive position. For a prospective Beem Light Sauna franchisee, this means that certain responsibilities, such as maintaining confidentiality and not competing with the franchise, will extend beyond the term of the franchise agreement. It is important for franchisees to understand these ongoing obligations and how they might affect their future business activities.