Under what circumstances is the Rider to the Franchise Agreement signed for a Beem Light Sauna franchise?
Beem_Light_Sauna Franchise · 2025 FDDAnswer 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.
- 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.
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- 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.
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- 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.
- COVENANT NOT TO COMPETE.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna FDD, there are specific instances that necessitate the signing of a Rider to the Franchise Agreement. For franchisees opening a Beem Light Sauna location in North Dakota, a Rider to the Franchise Agreement is required if the franchisee is a resident of North Dakota, the studio will be located or operated in North Dakota, or any of the franchise offering or sales activities occurred in North Dakota. Similarly, for franchisees in Rhode Island, a Rider is required if the franchisee is domiciled in Rhode Island, the studio will be located in Rhode Island, or any franchise-related activities occurred there.
These Riders, annexed to and forming part of the Franchise Agreement, serve to address specific legal or regulatory requirements within those states. The Riders modify certain sections of the standard Franchise Agreement to ensure compliance with state laws.
Prospective Beem Light Sauna franchisees should carefully review these state-specific Riders, if applicable, with their legal counsel to fully understand their rights and obligations. The Riders take precedence over conflicting terms in the standard Franchise Agreement, so understanding these nuances is crucial for franchisees operating in North Dakota and Rhode Island.