Is approval from Eos Worldwide required for all transfers of the franchise?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights and duties along with the Franchise granted in this Agreement are personal to you, and we have granted the Franchise to you in reliance upon our perceptions of your individual character, skill, aptitude, business ability and financial capacity. Accordingly, you may make no Transfer (as defined below) without our prior written approval, such approval not to be unreasonably withheld. Any purported Transfer without such approval will be null and void and constitute a material breach of this Agreement and will entitle us to terminate this Agreement.
As used in this Agreement, the term "Transfer" means your voluntary, involuntary, direct or indirect assignment, sale, gift, pledge, mortgage, disposal or other disposition of any legal or beneficial interest in: (i) the Franchise Agreement, (ii) any material asset of the Franchised Business; or (iii) the ownership interest in the Franchised Business, whether in the form of equity or voting interest. Transfers may include any merger or consolidation of the Business Entity, the issuance of additional securities or other ownership interests o
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Eos Worldwide for any transfer of their franchise. This approval will not be unreasonably withheld. A transfer is defined as any voluntary, involuntary, direct, or indirect assignment, sale, gift, pledge, mortgage, disposal, or other disposition of any legal or beneficial interest in the Franchise Agreement, any material asset of the Franchised Business, or the ownership interest in the Franchised Business, whether in the form of equity or voting interest. Transfers may also include any merger or consolidation of the Business Entity, or the issuance of additional securities or other ownership interests.
This requirement is in place because Eos Worldwide grants the franchise to individuals based on their perceived character, skills, aptitude, business ability, and financial capacity. The franchise agreement is personal to the franchisee, and Eos Worldwide relies on these personal attributes when granting the franchise. Therefore, any change in ownership or control must be approved by Eos Worldwide to ensure that the new owner or controlling party meets their standards.
If a franchisee attempts to transfer the franchise without obtaining prior written approval from Eos Worldwide, the attempted transfer will be considered null and void. This would also constitute a material breach of the Franchise Agreement, which could then entitle Eos Worldwide to terminate the agreement. This provision protects Eos Worldwide's interests by ensuring that only qualified and approved individuals or entities operate under their brand and system.