Under the Beem Light Sauna Development Agreement, what right is NOT granted to the developer?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, the Development Agreement grants the developer the right and obligation to develop and open a specified number of studios within a designated area and according to a development schedule outlined in Appendix A of the agreement. However, the agreement explicitly states that it does not grant the developer the right to franchise, license, subfranchise, or sublicense others to develop, open, or operate Beem Light Sauna studios. This right is reserved exclusively for the developer and/or their affiliated entities.

This restriction means that a Beem Light Sauna developer cannot sell franchises to other individuals or entities within their development area. Their role is strictly limited to developing and operating the studios themselves or through affiliated entities that they control. This ensures that Beem Light Sauna maintains control over the selection and training of franchisees, upholding brand standards and consistency across all locations.

Furthermore, the Development Agreement does not grant any rights to use the Beem Light Sauna Marks or the System. These rights are only granted by the Franchise Agreements. This distinction is important because the Development Agreement focuses on the expansion of the franchise network, while the Franchise Agreement governs the day-to-day operation of a single Beem Light Sauna studio. Therefore, a developer must also enter into a Franchise Agreement for each studio they plan to open in order to gain the right to use the Brand's Marks and System.