B58/100FDD 2025
beem® Light Sauna — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Elevated Risk
8 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
48
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$16.8M
Avg loan size
$350K
Participating lenders
6
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Delaware
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01HIGHGoing concern warning indicates serious financial/operational distress at corporate level
- 02MINORMultiple ongoing lawsuits involving franchisor officers (Geisler, Junk) across securities, derivative, and franchisee claims create management liability and distraction
- 03MINORExplosive unit growth (660% YoY) from low base (likely ~6 units prior year) suggests aggressive recruitment possibly masking unit quality/sustainability issues
- 04MINORNo Item 19 (Average Unit Volume) disclosure despite $465K average revenue claim — prevents validation of profitability claims
- 05HIGHSettled litigation with predecessor (Get Lit Concepts/Colorado Sweat Co) indicates operational or contractual problems in legacy system
- 06MED8% royalty on undisclosed net margins is unpredictable; high revenue doesn't guarantee profitability in fitness/wellness model
- 07MINORShared officers with Xponential Fitness (multi-brand franchisor) raises conflict-of-interest concerns and resource allocation questions
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.