What does Exhibit C contain in relation to Body20's financial obligations?
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, Exhibit C contains the audited balance sheet as of April 30, 2025, and related statements of operations, member's equity, and cash flows for the period from April 8, 2025 (inception) through April 30, 2025, for Body20's affiliate, Sequel Brands Holdings, LLC. Because Sequel Brands Holdings, LLC was organized in April 2025, the document states that three full years of audited financial statements for Sequel Brands Holdings, LLC are not yet available and cannot be included.
Furthermore, Exhibit C includes a copy of Sequel Brands Holdings LLC's guarantee of Body20's obligations under the Franchise Agreement. This guarantee signifies that Sequel Brands Holdings, LLC is ensuring Body20's performance of its duties and responsibilities as outlined in the franchise agreement.
For a prospective franchisee, this means that the financial stability and obligations of Body20 are backed by its affiliate, Sequel Brands Holdings, LLC. Reviewing the financial statements within Exhibit C will provide insight into the financial health of Sequel Brands Holdings, LLC, which serves as a guarantor for Body20's obligations. It is important to carefully examine these financial statements and the guarantee to understand the extent and nature of the financial backing provided.