Does Eos Worldwide assume any direct liability to franchisees regarding the Brand Fund?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Except as expressly provided in this Section, we assume no direct or indirect liability or obligation to you with respect to collecting amounts due to the Brand Fund.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide assumes no direct or indirect liability or obligation to franchisees with respect to collecting amounts due to the Brand Fund, except as expressly provided in the relevant section of the agreement. This means that franchisees cannot hold Eos Worldwide liable for any issues related to the collection of Brand Fund contributions.
This disclaimer protects Eos Worldwide from potential legal claims by franchisees regarding the Brand Fund. However, Eos Worldwide is still obligated to keep Brand Fund contributions separate from its other funds and provide an annual, unaudited statement of funds collected and costs incurred within 120 days of the fiscal year-end, upon written request. This provides some level of transparency and accountability regarding the Brand Fund's management.
It is important for prospective franchisees to understand the limitations of liability regarding the Brand Fund. While Eos Worldwide has the right to determine how the Brand Fund is spent, franchisees should be aware that they have limited recourse if they disagree with the franchisor's decisions or believe the funds are being mismanaged, as Eos Worldwide does not assume liability.