Is the Site Selection Area for a Beem Light Sauna franchise exclusive?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
nager, agent, independent contractor, or other third party. We will, however, remain responsible for ensuring that those obligations are performed in compliance with the terms of the Franchise Agreement.
ITEM 12 TERRITORY
Franchise Agreement
Site. Your franchise is for the specific Site that we approve. You must select a site that we have accepted within the non-exclusive Site Selection Area that we specify. Your Site Selection Area is not exclusive and is only intended to give you a general indication of the area within which you may locate the Site for the Studio. The site will be added to the Franchise Agreement once we accept it and you secure it.
Limited Territorial Protection. Once you have selected, and we have accepted, a Site in the Site Selection Area, and you have secured the Site, we will provide you an area in which you will have protected rights (the "Territory"). The size of your Territory may vary from the territory granted to other franchisees based on the location and demographics surrounding your Studio. Typically, the territory will be a geographic area encompassing (i) a population of approximately 50,000 people surrounding the applicable Studio or (ii) a two-mile radius from the front door of the Studio, whichever includes fewer people. However, in very high-density urban markets having a population above one million people, we might not provide any territory at all or might reduce the territory to no more than a city block. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
You will not receive an exclusive territory. You may face competition from other franchisees, outlets that we own, or other channels of distribution or competitive brands that we control.
Except as described below and for Non-Traditional Locations (defined below), we and our affiliates will not open, or license a third party to open, a Studio within your Territory.
Source: Item 12 — TERRITORY (FDD pages 47–51)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Site Selection Area granted to a franchisee is not exclusive. The FDD states that the Site Selection Area is only a general indication of where the franchisee may locate their studio. This means that Beem Light Sauna franchisees might face competition from other franchisees or company-owned outlets within their Site Selection Area.
Once a site is selected and approved by Beem Light Sauna, the franchisee will be granted a Territory. However, this Territory is also not exclusive. The size of the territory is typically a geographic area encompassing a population of approximately 50,000 people surrounding the studio or a two-mile radius from the front door of the studio, whichever includes fewer people. In high-density urban markets with a population above one million, Beem Light Sauna might not provide any territory or might reduce the territory to no more than a city block.
Beem Light Sauna and its affiliates retain the right to conduct business activities under any name and in any geographic area, regardless of proximity to a franchisee's studio, with some exceptions. These exceptions include not opening or licensing a third party to open a studio within the franchisee's Territory, except for Non-Traditional Locations, as long as the franchisee is in compliance with the Franchise Agreement. Non-Traditional Locations include venues such as big box gyms, cruise ships, military bases, and college campuses. This means that even within a franchisee's territory, Beem Light Sauna can establish or license other studios in these types of locations, potentially increasing competition for the franchisee.