Under what circumstances can a Beem Light Sauna franchisee terminate the franchise agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Section 14.3 | If we commit a material breach of the Franchise Agreement and we fail to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from you, you may terminate the Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–62)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if Beem Light Sauna commits a material breach of the agreement. However, the franchisee can only terminate if Beem Light Sauna fails to cure the breach or take reasonable steps to begin curing the breach within 60 days after receiving notice from the franchisee.
This means that a Beem Light Sauna franchisee cannot immediately terminate the agreement upon discovering a breach by the franchisor. The franchisee must first provide written notice to Beem Light Sauna, giving them 60 days to address and resolve the issue. If Beem Light Sauna does not fix the problem or begin to take action within that 60-day period, the franchisee then has the right to terminate the agreement.
This clause is designed to give Beem Light Sauna an opportunity to rectify any issues before the franchisee takes the drastic step of terminating the agreement. It also protects Beem Light Sauna from immediate termination for minor or easily correctable breaches. Prospective franchisees should carefully consider this provision and understand the process they must follow before terminating the agreement.