factual

Under what conditions can Beem Light Sauna revoke approval of a previously approved supplier?

Beem_Light_Sauna Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Revocation of Approval. We reserve the right to reinspect the facilities and products of any approved supplier and to reevaluate the services provided by any service provider at and to revoke approval of the item, service, supplier, or service provider if any fail to meet any of our then-current criteria. If you receive a notice of revocation of approval, you agree to cease purchasing or leasing the formerly-approved item or service or any items or services from the formerly-approved supplier or service provider and you must dispose of your remaining inventory of the formerly-approved items and services as we direct. If we revoke approval of a previously-approved product that you have been selling to customers or service or Sessions that you have been offering to customers, you must immediately discontinue offering the service or Sessions and may continue to sell the product only from your existing inventory for up to 30 days following our disapproval. We have the right to shorten this period if, in our opinion, the continued sale of the product would prove detrimental to our reputation. After the 30-day period, or such shorter period that we may designate, you must dispose of your remaining formerly-approved inventory as we direct.

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 retains the right to revoke approval of a previously approved supplier if the supplier fails to meet the franchisor's then-current criteria. This includes the right to reinspect the facilities and products of any approved supplier and to reevaluate the services provided by any service provider.

If Beem Light Sauna revokes approval, franchisees must stop purchasing or leasing the formerly-approved item or service from that supplier. Franchisees are also required to dispose of any remaining inventory of the formerly-approved items as directed by Beem Light Sauna.

If the revoked approval involves a product or service that the franchisee has been offering to customers, the franchisee must immediately discontinue offering the service. The franchisee can continue to sell the product from existing inventory for up to 30 days following the disapproval, but Beem Light Sauna has the right to shorten this period if they believe continued sales would harm their reputation. After the designated period, the franchisee must dispose of any remaining inventory as directed by Beem Light Sauna.

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.