Until when does the guarantee of performance by Body20's Company continue?
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, the guarantee of performance provided by SEQUEL BRANDS HOLDINGS LLC continues until one of two conditions is met. The guarantee remains in effect until either all obligations of Body20 Franchisor LLC under its franchise registrations and the Franchise Agreement are satisfied, or the liability of Body20 Franchisor LLC to its franchisees under the Franchise Agreement has been completely discharged. The condition that occurs first will end the guarantee.
This guarantee ensures that SEQUEL BRANDS HOLDINGS LLC will step in to fulfill the obligations of Body20 Franchisor LLC under the franchise registrations and Franchise Agreement. This provides a level of security for franchisees, knowing that another entity is committed to ensuring the terms of the agreement are met.
It is important to note that the guarantor is not discharged from liability if a claim by a franchisee against Body20 Franchisor LLC remains outstanding. This means that even if the obligations seem to be satisfied, any pending claims could extend the guarantee's duration. Franchisees should be aware that this guarantee is binding on the guarantor and its successors and assigns, ensuring long-term accountability.