What is the third pre-opening obligation of Beem Light Sauna related to site acquisition?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3. Site Acquisition. Before you make a binding commitment to purchase, lease, or sublease a site, we must approve in writing the proposed lease or purchase agreement or any letter of intent between you and the third-party seller or lessor. If you or your affiliate leases the site, unless we waive the requirement in writing, you must arrange for the execution of the Lease Rider in the form that is attached as Appendix D to the Franchise Agreement (the Franchise
Agreement is attached as Exhibit A of this Disclosure Document) by you and your landlord . Our review of the Site lease or sublease (the "Site Lease") is for our own benefit only and is not intended to supplement or replace a review by your attorney. We may require you to engage an attorney to review your Site Lease or purchase agreement for the Site that we have accepted and to supply us with reasonable documentation relating to that review, including a lease abstract and confirmation that the terms in the agreement reflect the terms in any letter of intent between you and the third-party seller or lessor. You must secure a site that we have accepted by signing a Site Lease or purchase agreement within 90 days after the effective date of your Franchise Agreement (the "Site Acquisition Deadline"). We may extend the Site Acquisition Deadline by up to 90 days in our sole discretion, and we may require you to execute a general release as a condition of our agreeing to grant such extension. If we have accepted a site for your Studio, and you are unable or unwilling to acquire such site or an alternative site that we accept by the Site Acquisition Deadline, we may terminate the Franchise Agreement. (Franchise Agreement – Section 4.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the third pre-opening obligation involves site acquisition. Before a franchisee makes a binding commitment to purchase, lease, or sublease a site, Beem Light Sauna must provide written approval of the proposed lease or purchase agreement, including any letter of intent between the franchisee and the third-party seller or lessor. If the franchisee or an affiliate leases the site, they must arrange for the execution of a Lease Rider in the form attached as Appendix D to the Franchise Agreement, unless Beem Light Sauna waives this requirement in writing.
Beem Light Sauna's review of the Site Lease is solely for their benefit and does not replace the need for the franchisee's attorney to review the document. Beem Light Sauna may require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation of that review, including a lease abstract and confirmation that the terms reflect any letter of intent. The franchisee must secure an accepted site by signing a Site Lease or purchase agreement within 90 days after the Franchise Agreement's effective date, referred to as the Site Acquisition Deadline.
Beem Light Sauna may extend the Site Acquisition Deadline by up to 90 days at their discretion, potentially requiring the franchisee to execute a general release as a condition of the extension. If Beem Light Sauna has accepted a site, but the franchisee is unable or unwilling to acquire it or an alternative site by the Site Acquisition Deadline, Beem Light Sauna reserves the right to terminate the Franchise Agreement. This process ensures that Beem Light Sauna maintains control over site selection and lease terms, while also placing responsibility on the franchisee to secure an appropriate site within a specified timeframe.