For Beem Light Sauna, what is included in the definition of 'Guaranteed Liabilities'?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the term 'Guaranteed Liabilities' encompasses a broad range of financial and performance obligations. Specifically, it refers to the franchisee's obligations, indebtedness, and liabilities to Beem Franchisor LLC and its affiliates. These liabilities can be direct or indirect, absolute or contingent, and of every kind and nature.
The 'Guaranteed Liabilities' include both existing obligations and those incurred in the future, whether they arise from the Franchise Agreement itself or from other sources. This definition also covers any extensions, renewals, or modifications to these obligations, whether in whole or in part.
In practical terms, this means that a guarantor is responsible for ensuring that the franchisee meets all financial and performance obligations to Beem Light Sauna. This could include franchise fees, royalties, payments for goods or services, and any other debts or liabilities the franchisee incurs. The guarantor's responsibility extends to any changes or modifications to these obligations over time. Prospective franchisees and their guarantors should carefully review the Payment and Performance Guarantee to fully understand the scope of these 'Guaranteed Liabilities' and their potential financial exposure.