What is the relationship between Sequel Brands Holdings, LLC and Body20 in terms of franchising?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
t recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before the financial statements are available to be issued.
The Company has evaluated subsequent events through May 2, 2025, which is the date the financial statements were available to be issued.
Note 3 – Member's Equity
The Company's LLC operating agreement has a perpetual life. Excess cash flow, tax liability distributions, and profits and losses are to be distributed to the Member in accordance with the operating agreement. The liability of the Company's Member is limited to its specific capital balance. Upon liquidation of the Company, the net assets shall be distributed to the Member in accordance with the operating agreement.
GUARANTEE OF PERFORMANCE
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.
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 acts as a guarantor for Body20 Franchisor LLC's obligations. Sequel Brands Holdings, LLC guarantees that it will assume the duties and obligations of Body20 Franchisor LLC under the franchise registration in each state where the franchise is registered and under its Franchise Agreement. This arrangement provides a level of security for franchisees, ensuring that the franchisor's obligations will be met even if Body20 Franchisor LLC faces financial difficulties.
This guarantee remains in effect until all obligations of Body20 Franchisor LLC under its franchise registrations and the Franchise Agreement are satisfied, or until the liability of Body20 Franchisor LLC to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. The guarantee specifies that Sequel Brands Holdings, LLC will not be released from liability if a franchisee's claim against Body20 Franchisor LLC remains outstanding, reinforcing the commitment to franchisees. Notice of acceptance is waived, and Sequel Brands Holdings, LLC does not waive receipt of notice of default on the part of Body20 Franchisor LLC.
In essence, Sequel Brands Holdings, LLC provides a financial safety net for the Body20 franchise system, assuring franchisees that the franchisor's duties will be upheld. This type of guarantee is intended to boost confidence in the franchise and protect the interests of franchisees. Anthony Geisler, as Chief Executive Officer of Sequel Brands Holdings LLC, signs the guarantee, indicating the company's commitment. The address for both Sequel Brands Holdings, LLC and Body20 Franchisor LLC is the same: 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660.