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Under what circumstances is the Rider to the Franchise Agreement required for a Beem Light Sauna franchise?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

the end of Sections 16.1 and 16.3(d) of the Franchise Agreement:

However, to the extent required by Article 33 of the General Business Law of the State of New York, this Section shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the New York State General Business Law, as amended, and the regulations issued thereunder.

  1. LIMITATION OF CLAIMS. The following is added to the end of Section 16.8 of the Franchise Agreement:

To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement under seal as of the Effective Date.

BEEM FRANCHISOR LLC (IF ENTITY): [Name] Name: Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:

RIDER TO THE FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA

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 on Appendix A. In this Rider, "we," "us," and "our" refers to Franchisor. "You" and "your" refers to Franchisee.

    1. BACKGROUND. We and you are parties to that certain Franchise Agreement dated __________________________, 20___ (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of North Dakota and the Studio that you will operate under the Franchise Agreement will be located or operated in North Dakota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
    1. RELEASES. The following is added to the end of Sections 2.2(d), 13.4(d), 13.5, 13.6, and 15.7(d)of the Franchise Agreement:

Any release required as a condition of renewal, sale and/or assignment/transfer will not apply to the extent prohibited by the North Dakota Franchise Investment Law.

  1. COVENANT NOT TO COMPETE. The following is added to the end of Section 12 of the Franchise Agreement:

Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota;

Source: Item 23 — RECEIPT (FDD pages 71–230)

What This Means (2025 FDD)

According to the 2025 Beem Light Sauna Franchise Disclosure Document, there are specific circumstances that require a rider to the franchise agreement. For franchisees operating in North Dakota, a rider is required if the franchisee is a resident of North Dakota, or if the Beem Light Sauna studio will be located or operated in North Dakota, or if any of the franchise offering or sales activities occurred in North Dakota.

Similarly, a rider is required for franchisees in Maryland if they are domiciled in Maryland or if the Beem Light Sauna studio will be located in Maryland. These riders, annexed to and forming part of the Franchise Agreement, modify certain sections of the agreement to comply with state-specific franchise laws.

Additionally, a Lease Rider is required as a condition for Beem Light Sauna authorizing a franchisee to enter into a lease for their studio location. This Lease Rider outlines the terms and conditions related to the franchisee's use of the premises, the franchisor's rights to access and modify the premises, and the conditions under which the lease can be assigned.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.