When transferring a Beem Light Sauna franchise, is the proposed transferee required to execute the then-current franchise agreement, and how does it relate to the existing agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
posed transferee and their representatives must successfully complete our then-current training requirements at their expense;
- (j) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must (i) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge and guarantee all of your obligations under this Agreement and (ii) must execute our then-current form of personal guarantee;
- (k) Your proposed transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must execute, for a term ending on the last day of the existing Term and with such Successor Term as is provided by this Agreement, our then-current franchise agreement for new franchisees and such other agreements as we may require, which agreements will supersede this Agreement in all respects. The terms of the new franchise agreement may differ significantly from the terms of this Agreement, including different fees.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a proposed transferee must execute the then-current franchise agreement for new franchisees. This agreement covers the remaining term of the existing franchise agreement, including any successor terms. This new agreement completely supersedes the original agreement in all respects.
The terms of the new franchise agreement that the transferee signs may differ significantly from the original agreement. These differences can include variations in fees. However, the prospective transferee will not be required to pay any initial franchise fee.
In addition to signing a new franchise agreement, the proposed transferee must also enter into a written assignment, in a form satisfactory to Beem Light Sauna, assuming and agreeing to discharge and guarantee all of the transferor's obligations under the original agreement. They must also execute Beem Light Sauna's then-current form of personal guarantee, if requested.
This requirement to sign a new franchise agreement ensures that all Beem Light Sauna franchisees operate under the most up-to-date terms and conditions. However, it also means that a potential buyer needs to carefully review the current franchise agreement to understand the full scope of their obligations and costs, as these may differ from what the seller experienced under their original agreement.