What does Sequel Brands Holdings, LLC guarantee for 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.
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
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, Sequel Brands Holdings, LLC, referred to as the "Guarantor," provides an absolute and unconditional guarantee to assume the duties and obligations of Beem Franchisor LLC, the franchisor. This guarantee extends to the franchisor's obligations under its franchise registration in each state where the franchise is registered. It also covers the Franchise Agreement as identified in the 2025 Franchise Disclosure Document, including any amendments, modifications, or extensions made to the agreement with franchisees over time. This indicates that Sequel Brands Holdings is financially backing Beem Franchisor LLC's commitments to its franchisees. This guarantee is signed on May 2, 2025, by Anthony Geisler, President of Sequel Brands Holdings LLC.
The guarantee remains in effect until all obligations of Beem Franchisor LLC under its franchise registrations and the Franchise Agreement are fully satisfied. Alternatively, the guarantee ends when the franchisor's liability to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first. Importantly, Sequel Brands Holdings, LLC is not released from liability if a franchisee's claim against Beem Franchisor LLC remains outstanding, providing an additional layer of security for franchisees.
This type of guarantee is significant for prospective Beem Light Sauna franchisees because it provides assurance that the franchisor's obligations will be met, even if the franchisor faces financial difficulties. The guarantee by Sequel Brands Holdings, LLC, a parent company, adds financial stability and credibility to the Beem Light Sauna franchise system. Franchisees should review the Franchise Agreement and related documents carefully to understand the full scope and limitations of this guarantee.