What are the conditions under which an Eos Worldwide franchisee can terminate the franchise 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 franchise agreement under specific conditions. The franchisee has the option to terminate the agreement at any point, provided they give Eos Worldwide 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.
However, to terminate the agreement, the franchisee and all applicable co-owners must execute a full release. They must also be in good standing with Eos Worldwide and continue to pay their monthly fees until the termination date is reached. It is important to note that, except for the specific conditions mentioned above, the franchisee is not entitled to any refunds of fees already paid to Eos Worldwide.
These termination conditions are fairly standard in the franchise industry, as they balance the franchisee's need for flexibility with the franchisor's need to maintain stability and recover costs. 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 protects Eos Worldwide from potential future claims by the franchisee. The continuation of monthly fee payments until the termination date helps Eos Worldwide recoup some of its initial investment in setting up the franchise location.