beem Light Sauna

Can you provide detailed information about the nature and status of the 6 pending litigation cases where the franchisor is named as defendant? What are the primary allegations and expected resolution timelines?

How do the allegations in the pending litigation cases relate to franchisee operations, financial performance, health and safety issues, or contractual disputes?

Given the company grew from 7 to 39 units in one year (457% growth), what is the franchisee recruitment strategy and how does such rapid expansion align with adequate training and support infrastructure?

The franchise fee of $65,000 exceeds the category typical range of $40,000-$60,000. What specific services, training, and support justify this premium pricing relative to competitors?

Why is the royalty rate of 8.0% higher than the typical range of 6.0-7.5% for fitness franchises? How does this compare to competitor royalty rates?

The transfer fee of $5,000 is notably lower than the typical range of $10,000-$17,138.50. What does this fee cover and are there additional costs associated with unit transfers?

The contract specifies 27 termination causes compared to the typical range of 15-21. Can you itemize the specific default triggers, particularly those that are non-curable or have short cure periods (24 hours)?

How many of the 6 pending litigation cases involve franchisees versus other parties (suppliers, employees, regulatory agencies)? What is the outcome status of each?

What is the breakdown of the 6 litigation cases by claim type (e.g., breach of contract, misrepresentation, health/safety violations, trademark infringement)?

Given zero terminations and zero non-renewals to date, has the company actually enforced the 27 listed termination causes? Can you provide examples of enforcement actions taken?

The non-compete clause restricts competitive businesses within 10 miles for 2 years post-termination. How is 'competitive business' defined, and has this clause been litigated in any of the pending cases?

All disputes are subject to binding arbitration in Newport Beach, California. Has this arbitration venue been a factor in any of the 6 pending cases, and what are the cost implications for franchisees in other states?

What percentage of the reported 39 current units have been operating for at least 1 full calendar year, and what is the actual financial performance of mature units versus newer units?

The Investment Cost score of 67 falls below the typical range. What are the total startup costs including real estate, equipment, working capital, and licenses beyond the stated franchise fee?

Can you clarify the Ongoing Fees score of 61 (below typical range of 62-63)? What ongoing fees beyond the 8% royalty and 2% ad fund are franchisees required to pay?

How does the renewal fee of $16,250 (25% of franchise fee) compare to competitor renewal fees, and are there additional refurbishment or equipment upgrade costs required at renewal?

Of the 39 current units, how many are company-owned versus franchisee-owned, and what are the actual results from company-owned units versus franchisee-operated units?

What specific support, marketing resources, and operational guidance justify the 8% royalty rate, and how is this support scaled given the rapid unit growth from 4 to 39 units in 3 years?

Are the pending litigation cases disclosed in the Item 19 financial performance disclosure, and if so, how are they factored into the reported sales figures?