What state's laws govern the Beem Light Sauna agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
r**") is made and entered into by and between Beem Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.
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- BACKGROUND. We and you are parties to that certain Franchise Agreement dated __________________________, 20___ (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) any of the offering or sales activity relating to the Franchise Agreement occurred in Illinois and the Studio that you will operate under the Franchise Agreement will be located in Illinois, and/or (b) you are domiciled in Illinois.
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- GOVERNING LAW. Section 16.1 of the Franchise Agreement is deleted and replaced with the following:
Except to the extent governed by the Federal Arbitration Act or other federal law, Illinois law governs this Agreement.
- CONSENT TO JURISDICTION. The following is added to the end of Section 16.3(d) of the Franchise Agreement:
Notwithstanding the foregoing, in conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in this Agreement that designates jurisdiction and venue in a forum outside of Illinois is void. However, this Agreement may provide for arbitration to take place outside of Illinois.
4. MUTUAL WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES. The following is added to the end of Sections 16.4 and 16.5 of the Franchise Agreement:
HOWEVER, THIS SECTION SHALL NOT ACT AS A CONDITION, STIPULATION OR PROVISION PURPORTING TO BIND ANY PERSON ACQUIRING ANY FRANCHISE TO WAIVE COMPLIANCE WITH ANY PROVISION OF THE ILLINOIS FRANCHISE DISCLOSURE ACT AT SECTION 705/41 OR ILLINOIS REGULATIONS AT SECTION 200.609.
- 5. ILLINOIS FRANCHISE DISCLOSURE ACT.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the governing law depends on the franchisee's location. For franchisees in Illinois, the agreement is governed by Illinois law, except to the extent governed by the Federal Arbitration Act or other federal law. The FDD specifies that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of Illinois.
For franchisees in Maryland, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law, despite any contrary statements in the Franchise Agreement. The FDD clarifies that the franchisee's right to bring a lawsuit in Maryland for claims arising under that law is not affected, subject to arbitration obligations. Additionally, any limitation of claims will not reduce the three-year statute of limitations afforded for claims under the Maryland Franchise Registration and Disclosure Law.
For franchisees in New York, a specific rider to the Development Agreement applies if the franchisee is domiciled in New York, the studios will be located in New York, or any offering or sales activity related to the Development Agreement occurred in New York. These state-specific provisions ensure that franchisees' rights are protected under their respective state laws, regardless of the standard terms in the franchise agreement.