Is there a Nondisclosure and Noncompete Agreement included in the Beem Light Sauna franchise documents?
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. Accordingly, Franchisor requires us to have you sign this Agreement.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, the franchisor requires franchisees to have their employees and independent contractors sign an agreement to protect confidential information and trade secrets. This agreement aims to prevent unauthorized disclosure or use of sensitive information that could harm Beem Light Sauna, its franchisees, and the franchisee's Studio.
Beem Light Sauna recognizes that for a franchisee to effectively operate their business, their employees and independent contractors must have access to confidential information and trade secrets owned by the franchisor. This includes information related to the Brand, Marks, System, and other confidential data developed and owned by Beem Light Sauna and its affiliates. The agreement ensures that these individuals are aware of the confidential nature of the information and are legally bound to protect it.
The agreement is put in place because disclosure of confidential information or trade secrets to unauthorized parties, or using it for purposes outside of operating the Beem Light Sauna Studio, could negatively impact the franchisor, other franchise owners, and the franchisee themselves. By requiring this agreement, Beem Light Sauna aims to safeguard its proprietary information and maintain a competitive advantage in the personal fitness industry.