Where can I find a copy of Sequel Brands Holdings LLC's guarantee of Body20's 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, Sequel Brands Holdings LLC guarantees Body20 Franchisor LLC's performance under the franchise agreements. A copy of this guarantee is included as Exhibit C to the FDD. Exhibit C also contains the financial statements of Sequel Brands Holdings, LLC as of April 30, 2025, and for the period from April 8, 2025 (inception) through April 30, 2025.
This guarantee is significant for prospective Body20 franchisees because it provides an added layer of security. Should Body20 Franchisor LLC fail to meet its obligations under the Franchise Agreement, Sequel Brands Holdings LLC is legally bound to step in and fulfill those responsibilities. This reduces the risk to the franchisee, as the financial stability and resources of Sequel Brands Holdings LLC stand behind the commitments made by Body20.
It is important to note that because Sequel Brands Holdings, LLC was formed in April 2025, the FDD only includes financial statements from its inception through April 30, 2025. The FDD does not include three full years of audited financial statements for Sequel Brands Holdings, LLC. Franchisees should carefully review Exhibit C, including the financial statements and the guarantee itself, to fully understand the scope and limitations of the guarantee provided by Sequel Brands Holdings LLC.