Under what conditions can litigation related to excepted disputes for Beem Light Sauna be filed, and where?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended; (ii) disputes that otherwise relate to the ownership or validity of any of the Intellectual Property; (iii) disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information; or (iv) disputes related to the payment of sums you owe us or our affiliates.
Any litigation under this subsection will be filed exclusively in the United States District Court for the district in which we have our principal place of business at the time of filing (or, if federal jurisdiction cannot be obtained, the state court in which we have our principal place of business at the time of filing), and you irrevocably consent to these courts' jurisdiction over you.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, certain disputes are excepted from mandatory arbitration and can be pursued through litigation. These include disputes arising under the Lanham Act, those related to the ownership or validity of Beem Light Sauna's intellectual property, enforcement of intellectual property rights, protection of proprietary information, and disputes related to the payment of sums owed to Beem Light Sauna or its affiliates.
Any litigation regarding these excepted disputes must be filed in the United States District Court for the district where Beem Light Sauna has its principal place of business at the time of filing. If federal jurisdiction is not obtainable, the litigation can be filed in the state court where Beem Light Sauna's principal place of business is located at the time of filing. The franchisee irrevocably consents to the jurisdiction of these courts.
This clause is significant for prospective franchisees as it clarifies the specific types of disputes that are not subject to arbitration and outlines the exclusive venues for any litigation related to those disputes. Franchisees should be aware of these conditions and understand that by entering into the franchise agreement, they are consenting to the specified courts' jurisdiction for these particular types of legal actions. This may have implications regarding travel and legal costs should litigation become necessary.