Is the balance sheet for Body20's affiliate, Sequel Brands Holdings, LLC, audited?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit C to this Disclosure Document is the audited balance sheet as of April 30, 2025, and the related statements of operations and member's equity, and cash flows for the period from April 8, 2025 (inception) through April 30, 2025 of our affiliate, Sequel Brands Holdings, LLC. Because Sequel Brands Holdings, LLC was organized in April 2025, it does not have available, and we cannot yet include, three full years of audited financial statements for Sequel Brands Holdings, LLC. Sequel Brands Holdings, LLC guarantees the performance of our obligations under the Franchise Agreement. A copy of Sequel Brands Holdings LLC's Guarantee of our obligations is also attached as Exhibit C.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 74)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the balance sheet for its affiliate, Sequel Brands Holdings, LLC, is indeed audited. Specifically, the FDD includes the audited balance sheet as of April 30, 2025, along with related statements of operations, member's equity, and cash flows for the period from April 8, 2025 (inception) through April 30, 2025. This audit was conducted in accordance with generally accepted auditing standards in the United States of America (GAAS).
Because Sequel Brands Holdings, LLC, was newly formed in April 2025, the FDD only includes financial statements for the period following its inception. The company does not yet have three full years of audited financial statements available, which is a common requirement for established businesses. The inclusion of audited financial statements, even for a limited period, provides potential Body20 franchisees with some level of assurance regarding the financial standing of the entity guaranteeing Body20's obligations.
Sequel Brands Holdings, LLC, serves as a guarantor for Body20's obligations under the Franchise Agreement. This means that Sequel Brands Holdings, LLC, is financially responsible for ensuring Body20 fulfills its commitments to its franchisees. The guarantee and the associated financial statements are included as Exhibit C to the FDD. Prospective franchisees should carefully review these statements and the auditor's report to understand the financial health and obligations of Sequel Brands Holdings, LLC, as it directly relates to Body20's ability to meet its franchise obligations.