Under what condition must a Beem Light Sauna franchisee arrange for the execution of a Lease Rider?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you make a binding commitment to purchase, lease, or sublease a site, we must approve in writing the proposed lease or purchase agreement or any letter of intent between you and the third-party seller or lessor. If you or your affiliate leases the site, unless we waive the requirement in writing, you must arrange for the execution of the Lease Rider in the form that is attached as Appendix D to the Franchise Agreement (the Franchise
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–47)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, a franchisee (or their affiliate) who leases a site for their studio must arrange for the execution of a Lease Rider. This requirement can be waived by Beem Light Sauna in writing. The Lease Rider must be in the form attached as Appendix D to the Franchise Agreement.
This means that if a Beem Light Sauna franchisee chooses to lease their location rather than purchase it, they will typically need to have a Lease Rider executed. A Lease Rider is an amendment to the lease agreement that protects the franchisor's interests. It typically outlines the franchisor's rights in the event the franchisee defaults on the franchise agreement. This Lease Rider ensures that Beem Light Sauna has certain rights regarding the leased property, even if the franchisee's business encounters difficulties.
It is important for prospective Beem Light Sauna franchisees to carefully review Appendix D of the Franchise Agreement to understand the specific terms of the Lease Rider. They should also discuss this requirement with their attorney and the landlord to ensure that the lease agreement and Lease Rider are acceptable to all parties. Understanding the conditions under which a Lease Rider is required and its implications is a crucial part of the due diligence process before signing a franchise agreement with Beem Light Sauna.