Under what conditions does the guarantee of performance for the Beem Light Sauna franchise continue?
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 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the guarantee of performance from SEQUEL BRANDS HOLDINGS LLC continues until certain conditions are met. 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 its Franchise Agreement identified in its 2025 Franchise Disclosure Document.
The guarantee remains in effect until either all obligations of Beem Light Sauna under its franchise registrations and the Franchise Agreement are satisfied, or the liability of Beem Light Sauna to its franchisees under the Franchise Agreement has been completely discharged. The guarantee specifies that SEQUEL BRANDS HOLDINGS LLC is not released from liability if a franchisee's claim against Beem Light Sauna is still outstanding.
This guarantee ensures that franchisees have additional security, knowing that SEQUEL BRANDS HOLDINGS LLC is committed to fulfilling Beem Light Sauna's obligations. This could be particularly important for franchisees concerned about the financial stability or performance of the franchisor. The waiver of notice of acceptance simplifies the process, while the non-waiver of notice of default ensures that the guarantor is informed of any failures by the franchisor. This guarantee is binding on the guarantor and its successors, providing long-term assurance to franchisees.