What consideration does Eos Worldwide provide for the Releasor's release of claims?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
with a covenant of lesser scope or duration which would be enforceable and you shall continue to be bound by all other provisions of these sections which are valid and enforceable.
17. TERMINATION.
17.1 By Franchisee.
If you are in full compliance with this Agreement, then subject to the other provisions of this Agreement, including those in this Section 17.1, you may terminate this Agreement:
- (a) at any time prior to registering for Boot Camp, with at least ten (10) days' prior written notice to us; or
- (b) at any other time, with at least sixty (60) days' prior written notice to us provided, that, you must continue to pay your Membership Fees through your termination date.
By exercising your right to terminate this Agreement pursuant to this Section 17.1, you acknowledge that you will not be entitled to any refunds of any portion of the Initial Franchise Fee, the Boot Camp Fee, or any Membership Fees or any other fees or amounts paid to us or our affiliates under this Agreement in connection with such termination, and further provided that any such termination shall be conditioned on you signing a general release effective as of your termination date in the form set forth on Exhibit A attached hereto (or any other form required by or acceptable to us) in favor of us and our affiliates, and our and our affiliates' respective members, owners, officers, directors, employees, consultants, advisors
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
Based on the 2025 Eos Worldwide Franchise Disclosure Document, the consideration provided for the Releasor's release of claims is tied to specific events within the franchise agreement, such as termination or renewal. When a franchisee terminates the agreement, they are not entitled to refunds of the Initial Franchise Fee, Boot Camp Fee, Membership Fees, or any other amounts paid to Eos Worldwide or its affiliates. However, the termination is conditional upon the franchisee signing a general release in favor of Eos Worldwide and its affiliates, covering all claims related to the agreement or franchise up to the termination date, except for claims that cannot be released under applicable law.
Similarly, when a franchisee seeks to renew their franchise agreement, they must sign a general release in favor of Eos Worldwide and its affiliates. This release covers all claims arising out of or related to the agreement or the franchise through the date of the general release, with the same exception for claims that cannot be released under applicable law. This requirement is part of the conditions for renewal, which also include executing the then-current form of the franchise agreement, satisfying qualifications for a new franchisee, and meeting training requirements.
In essence, the consideration provided by Eos Worldwide for the release of claims is the opportunity for the franchisee to either terminate the agreement (albeit without a refund of fees) or to renew the franchise agreement for another term. The franchisee's agreement to release Eos Worldwide from potential claims is a prerequisite for both of these actions. This is a fairly standard practice in franchising, where franchisors seek to protect themselves from future litigation related to the franchise relationship when franchisees exit the system or continue their franchise operations under a renewed agreement.