What does the term 'Owner' refer to in the context of a Beem Light Sauna franchise agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
l.** To simplify the language in this Disclosure Document, "we" or "us" means Beem Franchisor LLC, the franchisor. "You" or "Franchisee" means the person or entity who buys the franchise, including all equity owners of a corporation, general partnership, limited partnership, limited liability, or any other type of entity (an "Entity"). If you are an Entity, each individual or Entity that has a legal or beneficial interest in you will be referred to as an "Owner." Your Owners and their spouses (as applicable) must sign the Payment and Performance Guarantee attached to the Franchise Agreement, the current form of which is attached to this Disclosure Document as Exhibit A (the "Franchise Agreement"), which means that all of the provisions of the Franchise Agreement will also apply to your Owners and their spouses (as applicable).
We are a limited liability company formed in Delaware on December 30, 2024. We do business under the beem® Light Sauna name (the "Brand"). Our principal business address is 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660. If we have an agent for service of process in your state, we disclose that agent in Exhibit D.
We became the franchisor of beem® Light Sauna studios ("Studios") on January 31, 2025. We have never operated a Studio. Although we reserve the right to do so, we have not offered franchises in other lines of business. We have no business activities other than those described in this Item 1.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the term 'Owner' has a specific meaning when the franchisee is not an individual but rather a business entity. If the franchisee is a corporation, general partnership, limited partnership, limited liability company, or any other type of entity, then an 'Owner' refers to each individual or entity that holds a legal or beneficial interest in that franchisee entity.
This definition has important implications for those considering a Beem Light Sauna franchise through a business entity. All individuals or entities considered 'Owners' and their spouses must sign a Payment and Performance Guarantee attached to the Franchise Agreement. This means that the provisions of the Franchise Agreement apply not only to the franchisee entity itself but also to these individual owners and their spouses. This is a common practice in franchising to ensure that the franchisor has recourse to the personal assets of the individuals behind the franchisee entity, adding an extra layer of security for Beem Light Sauna.
Furthermore, Beem Light Sauna requires that one of the Owners with at least a 10% ownership interest be designated as the 'Operating Principal'. This Operating Principal must have the authority to make all business decisions related to the Beem Light Sauna studio and must have the power to legally bind the franchisee in all dealings with the franchisor. This ensures that Beem Light Sauna has a clear point of contact with sufficient authority within the franchisee's organization. The franchisee must also appoint a manager to handle the day-to-day operations, called the 'Designated Manager', and the Operating Principal can fulfill this role if deemed qualified by Beem Light Sauna.