Under what condition does Assetco guarantee Bft's obligations?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
thin 10 weeks of the date of this Disclosure Document is attached as Exhibit J.
In the last three fiscal years, Studio franchisees entered into confidentiality agreements that restrict their ability to speak openly about their experience with our franchise system. You may wish to speak with current and former franchisees, but be aware that not all such franchisees will be able to communicate with you.
There are no trademark-specific franchisee organizations associated with the franchise system being offered in this Item.
If you buy the franchise offered in this Disclosure Document, your contact information may be disclosed to other buyers when you leave the franchise system.
ITEM 21 FINANCIAL STATEMENTS
Attached to this Disclosure Document as Exhibit C are Assetco's audited financial statements which comprise the balance sheets as of December 31, 2024 and 2023, and related statements of operations, changes in member's equity, and cash flows and the related notes to the financial statements for the year ended December 31, 2024 and for the period from March 6, 2023 to December 31, 2023. Assetco was formed in March 2023, and therefore, is unable to provide three years of financial statements. We are a wholly-owned subsidiary of Assetco, and Assetco absolutely and unconditionally guarantees to assume our duties and obligations under the Franchise Agreements and Multi-Unit Agreements entered into while we are the wholly owned subsidiary of Assetco. A copy of the Assetco guarantee is attached as Exhibit D. Our and Assetco's fiscal year ends on December 31 of each year.
ITEM 22 CONTRACTS
The following agreements are attached to this Disclosure Document:
Exhibit A Form of Franchise Agreement and Exhibits Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Ownership Interests; Designated Market Area; Authorized Location; Designated Territory Authorized Location Addendum Guarantee, Indemnification and Acknowledgment Addendum to Lease Exhibit E Statement of Prospective Franchisee Exhibit G Form of General Release Exhibit H State Specific Addenda Exhibit K Form of Multi-Unit Agreement Exhibit L-1 Form of Sourcing Fee Addendum (Franchise Agreement) Exhibit L-2 Form of Sourcing Fee Addendum (Multi-Unit Agreement)
ITEM 23 RECEIPTS
Exhibit M contains detachable documents acknowledging your receipt of this Disclosure Document.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, XPOF Assetco, LLC ("Assetco") absolutely and unconditionally guarantees Bft's obligations as franchisor under the Franchise Agreements and Multi-Unit Agreements as long as Bft remains a wholly-owned subsidiary of Assetco. This guarantee is detailed in Exhibit D of the FDD.
Specifically, Assetco guarantees Bft's performance 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.
The guarantee remains in full effect until all obligations of Bft under its franchise registrations and Franchise Agreements are satisfied or until Bft's liability to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. Even if a franchisee has an outstanding claim against Bft, Assetco is not discharged from its liability. The guarantor, Assetco, does not waive notice of Bft's default. The guaranty is binding on Assetco and its successors and assignees.
Prospective franchisees should carefully review Exhibit D and the audited financial statements of Assetco (Exhibit C) to fully understand the scope and limitations of this guarantee, as well as Assetco's financial condition. This unconditional guarantee provides a level of security for franchisees, assuring that Bft's obligations will be met even if Bft encounters financial difficulties, provided it remains a wholly-owned subsidiary of Assetco.