What claims are excluded from the general release required by Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
r person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
In all other respects, the Franchise Agreement will be construed and enforced with its terms.
FOR THE STATE OF INDIANA
In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, IC 23-2.2.7 and the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Franchise Agreement for EOS Worldwide Franchising, LLC is amended as follows:
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- Governing Law. The laws of the State of Indiana supersede any provision of the Franchise Agreement or Delaware Law if such provisions are in conflict with Indiana law. The Franchise Agreement will be governed by Indiana law.
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- General Release. Sections 2.3 and 15.5(f) require Franchisee to sign a general release as a condition of renewal or transfer of the franchise and Section 17.1 requires Franchisee to sign a general release as a condition to exercising its right to terminate the Franchise Agreement; such release shall exclude claims arising under the Indiana Deceptive Franchise Practices Law or the Indiana Franchise Disclosure Law.
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- Termination. Section 17 of the Franchise Agreement is amended to prohibit unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
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- Franchisee Indemnification. The Franchise Agreement is amended to provide that Franchisee shall not be required to indemnify Franchisor for any liability imposed upon Franchisor as a result of Franchisee's reliance upon or use of procedures or products that were required by Franchisor, if such procedures or products were utilized by Franchisee in the manner required by Franchisor.
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- Governing Law. Section 20.1 of the Franchise Agreement is amended to provide that in the event of a conflict of law, the Indiana Franchise Disclosure Law, IC 23-2-2.5, and the Indiana Deceptive Franchise Practices Law will prevail.
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- Jurisdiction and Venue. The Franchise Agreement is amended to provide that Franchisee may commence litigation in Indiana for any cause of action under Indiana law. Choice of forum for litigation will not be limited to the State of Delaware.
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- Arbitration. The Franchise Agreement is amended to provide that arbitration between Franchisor and Franchisee shall be conducted in Indiana or a site mutually agreed upon.
In all other respects, the Franchise Agreement will be construed and enforced with its terms.
FOR THE STATE OF MARYLAND
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md. Code Ann., Bus. Reg. §§14-201-14-233, the Franchise Agreement for EOS Worldwide Franchising, LLC is amended as follows:
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- General Release. Sections 2.3 and 15.5(f) require Franchisee to sign a general release as a condition of renewal or transfer of the franchise and Section 17.1 requires Franchisee to sign a general release as a condition to exercising its right to terminate the Franchise Agreement; such release shall exclude claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Dispute Resolution. The following language is added to Section 20 of the Franchise Agreement:
- "Franchisee may bring a lawsuit in Maryland for claims arising out of the Maryland Franchise Registration and Disclosure Law. All claims arising under the Maryland Franchise Registration and Disclosure Law (Md. Code Bus. Reg., Sections 14-201 through 14-233) shall be commenced within three (3) years after the grant of the franchise."
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- Bankruptcy. Section 17.2(d), which terminates the Franchise Agreement upon the bankruptcy of Franchisee, may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq).
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- Governing Law.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the franchise agreement requires franchisees to sign a general release under certain conditions, such as renewal, transfer, or termination of the franchise agreement. However, these releases exclude specific types of claims depending on the state in which the franchise operates.
For franchisees in Indiana, the general release excludes claims arising under the Indiana Deceptive Franchise Practices Law or the Indiana Franchise Disclosure Law. Similarly, in Maryland, the release excludes claims arising under the Maryland Franchise Registration and Disclosure Law. In New York, the release excludes claims arising under the New York State General Business Law and its associated regulations. Franchisees in Rhode Island are not required to release claims arising under The Rhode Island Franchise Investment Act. Franchisees in Hawaii are not required to release claims arising under the Hawaii Franchise Investment Law. Finally, in Illinois, no general release can waive compliance with the Illinois Franchise Disclosure Act.
For a prospective Eos Worldwide franchisee, this means that while a general release is typically required, it does not prevent them from pursuing claims related to franchise laws specific to their state. This provides an added layer of protection, ensuring that franchisees retain their rights under state laws designed to protect them from deceptive or unfair franchise practices. Franchisees should consult with a legal professional to fully understand their rights and obligations regarding these releases and the specific exclusions applicable in their state.