Under what circumstances may Beem Light Sauna require franchisees to obtain nondisclosure and noncompete agreements from officers, directors, Designated Managers, Owners' spouses, and other individuals?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole discretion, require you to obtain from your officers, directors, Designated Managers, Owners' spouses, and other individuals that we may designate executed agreements containing nondisclosure and noncompete covenants similar in substance to those contained in this Section 12 as we prescribe in the Manuals and otherwise. The agreements must be in a form acceptable to us and specifically identify us as having the independent right to enforce them.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna FDD, Beem Light Sauna has the discretion to require franchisees to obtain nondisclosure and noncompete agreements from certain individuals. These individuals include the franchisee's officers, directors, Designated Managers, Owners' spouses, and any other individuals that Beem Light Sauna may designate.
The agreements that Beem Light Sauna requires franchisees to obtain must contain nondisclosure and noncompete covenants. These covenants must be similar in substance to those contained in Section 12 of the franchise agreement. Beem Light Sauna will prescribe the specific terms of these agreements in the Manuals or otherwise.
Furthermore, the agreements must be in a form that is acceptable to Beem Light Sauna. The agreements must specifically identify Beem Light Sauna as having the independent right to enforce them. This ensures that Beem Light Sauna can directly protect its interests, regardless of the franchisee's actions.