Under what conditions is the Rider to the Beem Light Sauna Franchise Agreement signed?
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. The following is added to the end of Section 12 of the Franchise Agreement:
Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota; however, we will enforce the covenants to the maximum extent the law allows.
- TERMINATION AND LIQUIDATED DAMAGES.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, there are specific conditions under which a rider to the franchise agreement is signed. For franchisees operating in North Dakota or Maryland, a rider is added to the Franchise Agreement. This rider becomes a part of the Franchise Agreement and is signed if the franchisee is a resident of North Dakota or Maryland, or if the Beem Light Sauna studio will be located or operated in either of those states. Additionally, the rider applies if any of the franchise offering or sales activities occurred in North Dakota.
For North Dakota franchisees, the rider modifies certain sections of the Franchise Agreement related to releases, specifically adding to the end of Sections 2.2(d), 13.4(d), 13.5, 13.6, and 15.7(d). Similarly, for Maryland franchisees, the rider affects sections concerning releases, adding to the end of Sections 2.2(d), 13.4(d), 13.5, 13.6, and 15.7(d), and also includes a clause about governing law, adding a sentence to the end of Section 16.1.
These riders ensure that Beem Light Sauna franchises comply with state-specific regulations and provide additional protections or clarifications for franchisees in those states. Franchisees should carefully review these riders to understand their rights and obligations under the Franchise Agreement, as they may differ from the standard agreement.