Under what circumstances is the Illinois Rider to the Franchise Agreement for Beem Light Sauna being signed?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
without reasonable cause. If any
ground for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
- The following paragraph is added to the end of Item 17:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on behalf of us. This provision supersedes any other term of any document executed in connection with the franchise.
WASHINGTON
(See State-Specific Riders to the Franchise Agreement.)
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE FRANCHISE AGREEMENT FOR USE IN ILLINOIS
THIS RIDER (this "Rider") is made and entered into by and between Beem Franchisor LLC, a Delaware limited liability company with its principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 ("Franchisor"), and the person or entity identified on Appendix A as the franchisee ("Franchisee") with its principal place of business as set forth o
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Illinois Rider to the Franchise Agreement is signed under specific circumstances related to the location of franchise activities and the franchisee's domicile. The rider is annexed to and becomes part of the Franchise Agreement. Specifically, the Illinois Rider is required if any offering or sales activity connected to the Franchise Agreement occurred in Illinois, and the Beem Light Sauna studio operated under the agreement will be located in Illinois. Additionally, the rider is necessary if the franchisee is domiciled in Illinois, regardless of where the franchise activities occurred.
This requirement ensures that Beem Light Sauna franchises operating in Illinois comply with the state's franchise laws and regulations. By including the rider, the franchise agreement acknowledges the specific legal requirements and protections afforded to franchisees under Illinois law. This may include provisions related to dispute resolution, termination rights, and other aspects of the franchise relationship.
For a prospective Beem Light Sauna franchisee, this means that if they are located in Illinois or plan to operate their studio there, they will need to carefully review and understand the Illinois Rider in conjunction with the standard Franchise Agreement. The rider modifies certain sections of the standard agreement to align with Illinois law, such as the governing law provision, which is replaced to specify that Illinois law governs the agreement, except to the extent governed by the Federal Arbitration Act or other federal law. This ensures that legal matters are handled within the Illinois legal framework, providing a level of predictability and protection for the franchisee.