What specific obligations of Body20 are guaranteed by Sequel Brands Holdings, LLC?
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 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 duties and obligations under its franchise registration in each state where the franchise is registered. This guarantee also extends to the Franchise Agreement as identified in the 2025 Franchise Disclosure Document, including any amendments, modifications, or extensions made to the agreement with franchisees over time. This ensures that Body20 fulfills its commitments to franchisees.
The guarantee remains in effect until all obligations of Body20 under its franchise registrations and the Franchise Agreement are satisfied, or until Body20's liability to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. This means Sequel Brands Holdings, LLC's guarantee is comprehensive and long-lasting, providing security for franchisees. The guarantee is not discharged even if a franchisee's claim against Body20 remains outstanding, reinforcing the commitment to address and resolve any franchisee issues.
Sequel Brands Holdings, LLC does not waive its right to receive notice of default on the part of Body20 Franchisor LLC, allowing them to stay informed and take necessary actions if Body20 fails to meet its obligations. The guarantee is binding on Sequel Brands Holdings, LLC and its successors and assigns, ensuring that the commitment remains even if the company undergoes changes in ownership or structure. This arrangement offers Body20 franchisees a layer of financial security, knowing that Sequel Brands Holdings, LLC stands behind Body20's obligations.