Who is the Guarantor of Bft's performance under the Franchise Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, XPOF ASSETCO, LLC, a Delaware limited liability company located at 17877 VON KARMAN AVENUE, SUITE 100, IRVINE, CALIFORNIA 92614 (the "Guarantor"), absolutely and unconditionally guarantees the performance by BFT FRANCHISE SPV, LLC, a Delaware limited liability company, located at 17877 VON KARMAN AVENUE, SUITE 100, IRVINE, CALIFORNIA 92614 (the "Franchisor"), of all of the obligations of Franchisor in accordance with the terms and conditions of the franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees as amended, modified or extended from time to time. This guaranty continues in full force and effect until all obligations of the Franchisor under its franchise registrations and Franchise Agreements are satisfied or until the liability of 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 notice of Franchisor's default. This guaranty is binding on the Guarantor and its successors and assignees.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the performance of BFT FRANCHISE SPV, LLC, as the Franchisor, under the Franchise Agreement is guaranteed by XPOF ASSETCO, LLC, a Delaware limited liability company located in Irvine, California. This guarantee ensures that the Franchisor fulfills all its obligations as outlined in the franchise registration and the Franchise Agreement.
The guarantee remains in effect until all obligations of Bft are met or the liability to its franchisees is completely discharged. The Guarantor is not released from liability even if a franchisee has an outstanding claim against Bft. The Guarantor waives notice of acceptance but does not waive notice of Bft's default. This agreement is binding on the Guarantor, including its successors and assignees.
This arrangement provides a level of security for franchisees, assuring them that a separate entity is responsible for ensuring Bft meets its contractual obligations. Prospective franchisees should understand the implications of this guarantee, including the Guarantor's financial stability and ability to fulfill these obligations, as it could affect the overall security of their investment.