Will Body20 or its affiliates guarantee any other obligations a Body20 franchisee may make?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
d below)), and other individuals that we may designate executed agreements containing nondisclosure and noncompete covenants in a form acceptable to us, such as the form attached as Exhibit H, which specifically identify us as having the independent right to enforce them.
If you are an Entity, each Owner, including the Operating Principal, and his/her spouse (as applicable) must sign the Payment and Performance Guarantee (the "Guarantee") attached to the Franchise Agreement, assuming and agreeing to discharge all obligations of the franchisee under the Franchise Agreement and agreeing to comply with the confidentiality, indemnification, covenant not to compete, and assignment provisions of the Franchise Agreement. If you are a party to a Development Agreement, each individual or Entity that has a legal and/or beneficial interest in you must sign the Payment and Performance Guarantee attached to the Development Agreement.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may offer for sale in the Studio only the products, services, and Sessions that we have approved in writing. In addition, you must offer the specific products, services, and Sessions that we require in the Manuals or otherwise in writing. We may designate specific products, services, and Sessions as optional or mandatory. You must offer all products, services, and Sessions that we designate as mandatory. You may sell products only in the varieties, forms, and packages that we have approved.
Source: Item 10 — FINANCING (FDD page 38)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, franchisees may have their obligations guaranteed by other parties. Specifically, if the franchisee is an entity, each owner, including the Operating Principal, and their spouse (if applicable), must sign a Payment and Performance Guarantee. This guarantee ensures that these individuals assume and agree to fulfill all the franchisee's obligations under the Franchise Agreement. They also agree to comply with the confidentiality, indemnification, covenant not to compete, and assignment provisions outlined in the Franchise Agreement. This requirement extends to those with legal or beneficial interests in a franchisee party to a Development Agreement, who must also sign the Payment and Performance Guarantee attached to the Development Agreement.
Furthermore, Sequel Brands Holdings LLC provides a guarantee of performance, ensuring it will assume the duties and obligations of Body20 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, 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 remains effective until all such obligations of Body20 Franchisor LLC are satisfied.
This arrangement protects Body20 by ensuring that there are multiple parties responsible for the franchisee's performance and adherence to the franchise agreement. For a prospective franchisee, this means that if they operate as an entity, the owners and their spouses will be personally liable for the franchise's obligations. Additionally, the guarantee from Sequel Brands Holdings LLC provides an extra layer of security for franchisees, assuring that the franchisor's duties will be fulfilled.