What specific obligations of Beem Light Sauna are guaranteed by Sequel Brands Holdings, LLC?
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 Beem Light Sauna's 2025 Franchise Disclosure Document, Sequel Brands Holdings, LLC, as the Guarantor, provides an absolute and unconditional guarantee to assume the duties and obligations of Beem Franchisor LLC. This guarantee specifically covers Beem Light Sauna's franchise registration in each state where the franchise is registered. It also extends to 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.
The guarantee remains in effect until all obligations of Beem Light Sauna under its franchise registrations and the Franchise Agreement are fully satisfied. Alternatively, the guarantee is valid until the liability of Beem Light Sauna to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first. Importantly, the Guarantor's liability is not discharged if a franchisee's claim against Beem Light Sauna remains outstanding, ensuring continued protection for the franchisee.
This guarantee underscores the financial commitment and stability behind the Beem Light Sauna franchise system. For a prospective franchisee, this guarantee offers a degree of security, knowing that a larger entity, Sequel Brands Holdings, LLC, stands behind Beem Light Sauna's obligations. This arrangement is not uncommon in franchising, where a parent company provides a guarantee to bolster confidence in a newer or smaller franchise brand. Franchisees should carefully review the Franchise Agreement and related documents to fully understand the scope and limitations of this guarantee.