Under what circumstances does Beem Light Sauna have the right to take over operation of the studio?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
15.6 Our Right to Operate. We will have the right to immediately enter and take possession of the Studio to maintain continuous operation of the Studio, provide for orderly change of management and disposition of personal property, and otherwise protect our interests. Our right to possess and operate the Studio will continue until (i) we decline or fail to timely exercise our option to purchase the Studio or (ii) we have exercised our option to purchase the Studio and closed on such purchase. If we exercise the right to possess and operate the Studio, you must vacate the Studio promptly and completely, rendering all necessary assistance to us to enable us to take prompt possession and assume operations, and you will have no right to any revenue that we earn while operating the Studio. If you dispute the validity of our termination of this Agreement or our decision to not grant a Successor Term, we will nevertheless have the option, which you irrevocably grant, to operate the Studio pending the final, unappealed determination of the dispute under this Agreement. If an arbitrator or court of competent jurisdiction makes a final, unappealed determination that the termination of this Agreement or our failure to offer a Successor Term was not valid, we will make a full and complete accounting for the period during which we operated the Studio. We have the unrestricted right to assign or delegate this right to operate the Studio to an Affiliate or third party to operate the Studio in accordance with this Section.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Beem Light Sauna has specific rights regarding the operation of a studio. Beem Light Sauna has the right to immediately enter and take possession of the studio to maintain continuous operation, manage changes, handle personal property, and protect their interests. This right remains until Beem Light Sauna either declines to purchase the studio or completes the purchase.
If Beem Light Sauna chooses to exercise its right to possess and operate the studio, the franchisee must promptly vacate the premises and assist in the transition. During this period, the franchisee will not be entitled to any revenue generated by the studio. Even if the franchisee disputes the termination or the decision not to grant a successor term, Beem Light Sauna retains the option to operate the studio pending the resolution of the dispute.
In the event that a final determination is made that the termination or failure to offer a successor term was invalid, Beem Light Sauna will provide a full accounting for the period during which they operated the studio. Beem Light Sauna also has the right to assign or delegate the operation of the studio to an affiliate or third party.
This clause ensures that Beem Light Sauna can maintain brand standards and operational continuity, while also protecting its investment and interests in the franchise. It also outlines the responsibilities and limitations of both the franchisor and franchisee during such a transition.