What is the relationship between Sequel Brands Holdings, LLC and Beem Light Sauna?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, SEQUEL BRANDS HOLDINGS LLC, a Delaware limited liability company with a principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of BEEM FRANCHISOR LLC, a Delaware limited liability company with a principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 (the "Franchisor"), under (a) its franchise registration in each state where the franchise is registered and (b) its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as such Franchise Agreement may be entered into with franchisees and amended, modified, or extended from time to time. This guarantee continues until (i) all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or (ii) the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to the 2025 FDD, Beem Light Sauna is a franchise offered by Beem Franchisor LLC. Sequel Brands Holdings LLC guarantees the performance of Beem Franchisor LLC under its franchise agreements. This guarantee means that Sequel Brands Holdings LLC assures that Beem Franchisor LLC will fulfill its obligations to franchisees as outlined in the Franchise Agreement and franchise registrations.
Sequel Brands Holdings LLC acts as the guarantor, promising to cover the duties and obligations of Beem Franchisor LLC. This guarantee remains in effect until all obligations are met or the liability of Beem Franchisor LLC to its franchisees is completely discharged. The guarantee is binding on Sequel Brands Holdings LLC and its successors. The address shared by both Sequel Brands Holdings LLC and Beem Franchisor LLC is 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660.
In practical terms, this arrangement provides an additional layer of security for Beem Light Sauna franchisees. If Beem Franchisor LLC fails to meet its obligations, franchisees can seek recourse from Sequel Brands Holdings LLC. This guarantee can be a significant factor for prospective franchisees, as it demonstrates a commitment from a related entity to ensure the franchisor's performance and stability.