Are there any exceptions to the covenant not to sue in the Beem Light Sauna General Release?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3. Covenant Not to Sue. Franchisee, Transferee, and Guarantors (on behalf of Releasors) covenant not to initiate, prosecute, encourage, assist, or (except as required by law) participate in any civil, criminal, or administrative proceeding or investigation in any court, agency, or other forum, either affirmatively or by way of cross-claim, defense, or counterclaim, against any Released Party with respect to any Claim released under Section 1.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchisee, transferee, and guarantors agree not to initiate or participate in any legal proceedings against the released party regarding any claim released under Section 1 of the General Release. However, there is an exception to this covenant. The covenant not to sue does not apply if participation in any civil, criminal, or administrative proceeding or investigation is required by law.
This means that while franchisees generally waive their right to sue Beem Light Sauna over matters covered in the release, they are not prevented from cooperating with law enforcement or complying with legal mandates. This ensures that franchisees do not violate any laws by adhering to the covenant not to sue.
This type of clause is relatively standard in franchise agreements, as franchisors seek to protect themselves from potential litigation while acknowledging franchisees' legal obligations. Prospective Beem Light Sauna franchisees should carefully review the scope of claims released under Section 1 to fully understand what rights they are waiving, except where legally compelled to participate in a proceeding or investigation.