Can the Technology System used in a Beem Light Sauna franchise be used for purposes other than business?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We are a franchisee of Beem Franchisor LLC ("Franchisor") under a Franchise Agreement dated [DATE] (the "Franchise Agreement"), pursuant to which Franchisor granted us the right to operate a franchised business (the "Studio") under the "beem® Light Sauna" name (the "Brand"). We have a license to use the Brand and certain other trademarks designated by Franchisor (collectively, the "Marks"), certain policies and procedures used in the operation of the Studios (the "System"), and the confidential information developed and owned by Franchisor and its affiliates in our Studio. Franchisor recognizes that, in order for us to effectively operate our business, our employees and independent contractors whom we retain must have access to certain confidential information and trade secrets owned by Franchisor. Disclosure of this confidential information and trade secrets to unauthorized persons, or its use for any purpose other than the operation of our Studio, would harm Franchisor, other franchise owners, and us.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the Technology System provided to franchisees is intended solely for the operation of their Beem Light Sauna studio. The franchise agreement stipulates that confidential information and trade secrets, which are part of the System, must not be disclosed to unauthorized persons or used for any purpose other than running the franchised studio. This restriction is in place to protect the franchisor, fellow franchisees, and the franchisee themselves.
This means a Beem Light Sauna franchisee cannot use the brand's software, computer programs, online booking system, or other proprietary technology for any outside business ventures or personal use. The System Standards, as outlined in the operations manuals, are to be strictly followed to maintain brand consistency and protect the integrity of the Beem Light Sauna business model.
Furthermore, the franchise agreement includes non-compete clauses that prevent franchisees from engaging in any activity that could harm the goodwill associated with the Beem Light Sauna brand, Marks, and System. This includes restrictions on using vendor relationships established through the franchise for purposes other than purchasing products or equipment for the studio. Violation of these terms could lead to legal action, including injunctive relief and suits for damages, as stated in the franchise agreement.