Under what conditions does the guaranty of Bft's performance by XPOF ASSETCO, LLC continue?
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.
The Guarantor signs this guaranty at Irvine, California on the 14 day of March , 2025.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, XPOF ASSETCO, LLC guarantees Bft's performance as the Franchisor. This guaranty ensures that Bft will fulfill its obligations under the franchise registration and the Franchise Agreement.
The guaranty remains in full effect until all of Bft's obligations under the franchise registrations and Franchise Agreements are completely satisfied. Alternatively, it continues until Bft's liability to its franchisees under the Franchise Agreement has been fully discharged. The key point is that the guaranty is not discharged if a franchisee's claim against Bft remains outstanding.
This arrangement provides a level of security for franchisees, as XPOF ASSETCO, LLC, as the guarantor, is committed to ensuring Bft meets its contractual obligations. This could be particularly important for new franchisees who may be concerned about the financial stability or performance of a relatively new franchise system. The guarantor does not waive notice of Bft's default. The guaranty is binding on the Guarantor and its successors and assignees. The Guarantor signed this guaranty at Irvine, California on March 14, 2025.