As of what date is the audited balance sheet for Body20's affiliate, Sequel Brands Holdings, LLC?
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 audited balance sheet for Body20's affiliate, Sequel Brands Holdings, LLC, is as of April 30, 2025. The document includes the balance sheet, related statements of operations, member's equity, and cash flows for the period from April 8, 2025 (inception) through April 30, 2025. This is because Sequel Brands Holdings, LLC, was formed on April 8, 2025, and therefore does not have three full years of audited financial statements available.
It's important to note that Sequel Brands Holdings, LLC, guarantees Body20's performance under its franchise agreements. A copy of this guarantee is included as Exhibit C in the FDD. This guarantee can provide some assurance to franchisees regarding Body20's financial stability and ability to meet its obligations.
Prospective franchisees should carefully review the financial statements of Sequel Brands Holdings, LLC, and the guarantee agreement to understand the extent of the guarantor's obligations and financial condition. This is a common practice in franchising, where a parent company or affiliate provides a guarantee to support a newer or smaller franchise operation.