Does the arbitration provision of the Eos Worldwide franchise agreement survive termination or expiration of the agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any expiration or termination of this Agreement for any reason, you must, at your cost and expense:
- (g) comply with the post-termination covenants set forth in Section 16 hereof and elsewhere in this Agreement, all of which will survive the transfer, termination or expiration of this Agreement and cease any and all contact with Clients, suppliers, vendors, employees or our agents without our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
Based on the 2025 FDD, the Eos Worldwide franchise agreement specifies that certain obligations survive the termination or expiration of the agreement. Specifically, section 17.6(g) states that the post-termination covenants outlined in Section 16 and elsewhere in the agreement will continue to be in effect even after the agreement ends. These covenants include ceasing contact with clients, suppliers, vendors, employees, or agents without prior written consent from Eos Worldwide.
While the FDD excerpt confirms the survival of post-termination covenants, it does not explicitly state whether the arbitration provision itself survives termination or expiration. Arbitration is not mentioned in the context of obligations that continue after the agreement ends.
A prospective Eos Worldwide franchisee should carefully review Section 16 of the franchise agreement and other relevant sections to fully understand the scope and implications of the post-termination covenants. To clarify whether the arbitration provision survives termination or expiration, a prospective franchisee should seek explicit confirmation from Eos Worldwide during their due diligence process. This confirmation should ideally be obtained in writing to avoid any future misunderstandings.