During the term of the Beem Light Sauna franchise, are franchisees allowed to own a weight loss center?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| Franchisee Party owns the Site, we may elect to purchase the Site, or lease the Site, from that Franchisee Party. If the Site is leased from an unaffiliated lessor, you must, at our option, cause the applicable Franchisee Party to assign the lease to us or enter into a sublease with us on the same terms. | |||
| p. | Death or disability of franchisee | Section 13.8 | Executor or representative must, within 120 days after death or appointment of a personal representative or trustee, dispose of the interest under the applicable terms of Section 13 of the Franchise Agreement, except no transfer fee will be payable in connection with that disposition. |
| q. | Non-competition covenants during the term | Section 12.1 | You and your Owners may not: (A) own, manage, engage in, be employed by, advise, make loans to, or have any other interest in (i) any sauna studio, salon with a sauna offering, therapeutic light or laser treatment center, weight loss center, business selling nutritional supplements, or business involved in self-care, (ii) any business that offers products, services, or Sessions that are similar to those offered by a Studio, or (iii) any Entity that grants franchises or licenses for any of the businesses in (i) or (ii) (a "Competitive Business") in the United States; (B) divert or attempt to divert any business or customer or potential business or customer of the Studio to any Competitive Business, by direct or indirect inducement or otherwise; (C) perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (D) use any vendor relationship established through your association with us for any purpose other than to purchase products or equipment for use or retail sale in the Studio. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, franchisees and their owners are restricted from engaging in certain competitive business activities during the term of the franchise agreement. Specifically, they cannot own, manage, or have any interest in a weight loss center. This restriction also extends to other related businesses such as sauna studios, salons with sauna offerings, therapeutic light or laser treatment centers, businesses selling nutritional supplements, or any business involved in self-care.
This non-compete clause is designed to protect Beem Light Sauna's market position and brand integrity. It prevents franchisees from directly competing with the services offered by Beem Light Sauna studios. The restriction applies not only to ownership but also to management, employment, advising, lending, or any other form of interest in a competitive business.
For a prospective Beem Light Sauna franchisee, this means that they must not have any existing involvement in the specified competitive businesses, including weight loss centers. Furthermore, they are prohibited from starting or investing in such businesses during the term of their franchise agreement. This restriction also applies to the franchisee's owners, ensuring a comprehensive non-compete obligation. Violation of this clause could lead to breach of contract and potential legal consequences.