What conditions must be met for an Eos Worldwide franchisee to terminate the agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section Franchise Agreement | in Summary |
|---|---|---|
| a. | 2.2 | Five (5) year term ending on the last day of the calendar month |
| Length of the franchise term | following your five-year anniversary. | |
| b. Renewal or extension of the term | 2.3 | The franchise may be renewed for up to two 3-year year terms if you are in good standing and we are still in the business of offering and selling new EOS Worldwide franchises. |
| c. Requirements for franchisee to renew or extend | 2.3 | Requirements include: (i) you provide us the prior notice required in the Franchise Agreement; (ii) you complete, to our satisfaction all maintenance and upgrading necessary we require; (iii) you are in good standing; (iv); you satisfy all monetary obligations you owe us, our affiliates, and our Approved Suppliers; (v) you execute our then current form of Franchise Agreement; (vi) you satisfy our then-current requirements for new franchisees and our training requirements; (vii) you and your applicable co-owners sign a general release; and (viii) we are still in the business of offering and selling new EOS franchises. The then-current standard Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. |
| d. Termination by franchisee | 17.1 | You may terminate at any time with 60 days' prior written notice. You may also terminate prior to registering for Boot Camp with at least 10 days' prior written notice. To do so, you and your applicable co-owners must execute a full release and you must be in good standing and must pay your monthly fees until your termination date. Except as described above, you are not entitled to any refunds of any fees. Provisions regarding termination by us are subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, a franchisee can terminate the agreement under specific conditions. A franchisee may terminate the agreement at any time by providing Eos Worldwide with 60 days' prior written notice. Additionally, a franchisee can terminate the agreement with at least 10 days' prior written notice before registering for Boot Camp.
To terminate the agreement, the franchisee and all applicable co-owners must execute a full release. The franchisee must also be in good standing with Eos Worldwide and continue to pay monthly fees until the termination date. It is important to note that, except for the specific conditions mentioned above, the franchisee is not entitled to any refunds of fees paid to Eos Worldwide.
These termination conditions are fairly standard in the franchise industry, as they protect the franchisor's interests while allowing franchisees a way out of the agreement under certain circumstances. The requirement of a written notice period allows Eos Worldwide to prepare for the transition and find a replacement franchisee if necessary. The execution of a full release ensures that Eos Worldwide is protected from any future claims or liabilities from the franchisee. The continuation of monthly fees until the termination date compensates Eos Worldwide for the ongoing use of its systems and intellectual property during the notice period.