What is the relationship between Sequel Brands Holdings, LLC and Beem Light Sauna franchises?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
s do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before the financial statements are available to be issued.
The Company has evaluated subsequent events through May 2, 2025, which is the date the financial statements were available to be issued.
Note 3 – Member's Equity
The Company's LLC operating agreement has a perpetual life. Excess cash flow, tax liability distributions, and profits and losses are to be distributed to the Member in accordance with the operating agreement. The liability of the Company's Member is limited to its specific capital balance. Upon liquidation of the Company, the net assets shall be distributed to the Member in accordance with the operating agreement.
GUARANTEE OF PERFORMANCE
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.
The Guarantor signs this guarantee at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 on May 2, 2025.
Guarantor:
SEQUEL BRANDS HOLDINGS LLC
Name: Anthony Geisler
Title: President
EXHIBIT D TO THE FRANCHISE DISCLOSURE DOCUMENT
State Administrators and Agents for Service of Process
Listed here are the names, addresses and telephone numbers of the state agencies having responsibility for franchising disclosure/registration laws and for service of process. We may not yet be registered to sell franchises in any or all of these states.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to the 2025 Beem Light Sauna Franchise Disclosure Document, Sequel Brands Holdings, LLC serves as a guarantor for Beem Franchisor LLC's obligations. Specifically, Sequel Brands Holdings, LLC guarantees the duties and obligations of Beem Franchisor LLC under its franchise registration in each state where the franchise is registered and under its Franchise Agreement. This arrangement ensures that franchisees have an additional layer of security, as Sequel Brands Holdings, LLC is committed to fulfilling Beem Franchisor LLC's responsibilities if the latter fails to do so.
This guarantee remains in effect until all obligations of Beem Franchisor LLC under its franchise registrations and the Franchise Agreement are satisfied, or until the liability of Beem Franchisor LLC to its franchisees under the Franchise Agreement has been completely discharged. Even if a claim by a franchisee against Beem Franchisor LLC is outstanding, Sequel Brands Holdings, LLC remains liable. This guarantee is binding on Sequel Brands Holdings, LLC and its successors and assigns, providing long-term security for Beem Light Sauna franchisees.
Furthermore, Sequel Brands Holdings, LLC, through its parent company Sequel Brands, LLC, acquired Beem Franchisor LLC on January 31, 2025. Beem Franchisor LLC owns the intellectual property rights, operating systems, trademarks, service marks, and other intellectual property used to sell Beem Light Sauna franchises. This acquisition is part of Sequel Brands' strategy to grow its fitness franchise entities. Trevor Lucas, the Chief Financial Officer, is an employee of Sequel Brands, indicating a direct operational connection between Sequel Brands and Beem Light Sauna.