Will Body20 or its affiliates guarantee a franchisee's promissory note?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
ted with Predecessor.
Parent and Certain Affiliates. We are a wholly-owned subsidiary of Sequel Brands, LLC, a Delaware limited liability company ("Sequel"). Sequel shares our principal business address.
We are affiliated with Sequel Brands Holdings LLC, a Delaware limited liability company ("Sequel Holdings"), which was formed on April 8, 2025. Sequel is the direct parent company to Sequel Holdings. Sequel Holdings guarantees our performance under our franchise agreements. Sequel Holdings shares our principal business address.
Source: Item 10 — FINANCING (FDD page 38)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Body20 itself does not appear to guarantee a franchisee's promissory note. However, the FDD includes a Payment and Performance Guarantee, under which the franchisee's owners and their spouses must guarantee the franchisee's obligations to Body20.
Specifically, the franchisee's owners and their spouses must sign a Payment and Performance Guarantee, which is attached as Exhibit A to the Franchise Agreement. This guarantee means that the owners and their spouses are responsible for ensuring that all obligations, indebtedness, and liabilities of the franchisee to Body20 are met. This includes any debts or liabilities incurred under the Franchise Agreement.
According to Item 1, Sequel Holdings LLC, the direct parent company to Body20's parent company, guarantees Body20's performance under its franchise agreements. However, this is distinct from Body20 or its affiliates guaranteeing a franchisee's promissory note. A prospective franchisee should clarify with Body20 the circumstances under which they might require a promissory note and whether Body20 or any affiliate would guarantee it.