If Body20 assigns the Franchise Agreement, what happens to Body20's duties and obligations?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, SEQUEL BRANDS HOLDINGS LLC, a Delaware limited liability company with a principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of BODY20 FRANCHISOR LLC, a Delaware limited liability company with a principal place of business at 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660 (the "Franchisor"), under (a) its franchise registration in each state where the franchise is registered and (b) 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 continues until (i) all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or (ii) the liability of the Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, Sequel Brands Holdings LLC absolutely and unconditionally guarantees to assume the duties and obligations of Body20 Franchisor LLC under its franchise registration in each state where the franchise is registered and under 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 continues until all such obligations of Body20 under its franchise registrations and the Franchise Agreement are satisfied, or the liability of Body20 to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. Sequel Brands Holdings LLC is not discharged from liability if a claim by a franchisee against Body20 remains outstanding.
This type of guarantee is common in franchising, especially when the franchisor is a newer entity or part of a larger organization. It provides an added layer of security for franchisees, ensuring that the obligations of the franchise agreement will be met even if the original franchisor faces financial difficulties or is acquired. The guarantee is binding on Sequel Brands Holdings LLC and its successors and assigns.