Does Beem Light Sauna have sole discretion to withhold consent for a transfer?

According to the 2025 Beem Light Sauna Franchise Disclosure Document, Beem Light Sauna has sole and absolute discretion to withhold consent for a transfer of the franchise agreement and license, with a few exceptions. The FDD states that the franchise agreement and license are personal to the franchisee, and Beem Light Sauna has granted the license based on the franchisee's and their owners' business skill, financial capacity, and personal character.

Therefore, franchisees cannot transfer any interest in the agreement or license without prior written consent from Beem Light Sauna. Any transfer without this consent is considered an event of default, potentially leading to termination of the agreement without an opportunity to cure the issue. To initiate a transfer, franchisees must provide written notice and all relevant information about the transfer and the proposed transferee that Beem Light Sauna reasonably requires.

Beem Light Sauna retains the right to communicate with the franchisee, their counsel, and the proposed transferee regarding any aspect of the proposed transfer. A transfer requiring consent cannot be completed until at least 60 days after Beem Light Sauna receives written notice. However, this sole and absolute discretion to withhold consent is subject to exceptions outlined in sections 13.6, 13.7, and 13.8 of the franchise agreement, which cover transfers to an entity, permitted transfers, and transfers upon death, incapacity, or bankruptcy. Beem Light Sauna may also impose specific conditions for granting consent. If the Beem Light Sauna studio is not open and operating, Beem Light Sauna will not consent to the transfer of the agreement.

It is important to note that Beem Light Sauna's consent to a transfer does not waive any existing claims against the transferor or their right to demand compliance with the agreement terms. For a proposed control transfer, the franchisee or transferee must pay a transfer fee and ensure all financial and other obligations to Beem Light Sauna, its affiliates, and approved suppliers are current and satisfied.