What constitutes a material breach of the Eos Worldwide franchise agreement that would prevent renewal?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
ut no more than three hundred and sixty (360) days) prior to the expiration of the Initial Term or then-current Renewal Term (and any such notice to renew shall be irrevocable unless prohibited by applicable law);
- (b) You have at your expense completed, to our satisfaction, at least sixty (60) days
prior to the expiration of the Initial Term or then-current Renewal Term, all reasonable refurbishment, modernization, maintenance and upgrading, as applicable, necessary to bring your Franchise into full compliance with our then-current Franchise System Standards;
- (c) You are not in material breach of any provision of this Agreement, or any other agreement with us, our affiliates, or our approved/designated suppliers and vendors that relates to the operation of the EOS Franchise, and you have substantially and timely complied with all of the material provisions of such agreements during their respective terms;
- (d) You have satisfied all monetary obligations you owe us, our affiliates, and our approved/designated suppliers and vendors that relate to the operation of the EOS Franchise;
- (e) At least fifteen (15) days prior to the expiration of the Initial Term or then-current Renewal Term, you execute our then-current form of franchise agreement, the terms of which may vary substantially from the terms of this Agreement and may include, without limitation, increased monthly membership fees and advertising obligations, it being understood that the terms of such renewal (including those within any then-current form of franchise agreement) shall supersede this Agreement in all respects for purposes of such Renewal Term; provided, however that you will not be required to pay any Initial Franchise Fee with such renewal franchise agreement;
- (f) You satisfy our then-current qualifications and standards for a new franchisee and have satisfied training requirements for renewing franchisees prior to the expiration of the then-current Term at your sole expense, if any;
- (g) You sign a general release 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, agents, successors and assigns (in their corporate and individual capacities), for all claims arising out of or related to this Agreement or your Franchise through the date of the general release, except in respect of those claims and causes of action which cannot be released under applicable law;
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, several actions can constitute a material breach of the franchise agreement, preventing renewal. These include not being in material compliance with the franchise agreement or related agreements with Eos Worldwide, its affiliates, or approved suppliers. Franchisees must also satisfy all monetary obligations to Eos Worldwide, its affiliates, and approved vendors.
Further, a franchisee's failure to timely and successfully complete mandatory training, or for Professional EOS Implementers, failing to meet Minimum Performance Requirements and not attending required Remedial Training, can also be considered a material breach. Breaching Section 16 of the agreement, knowingly failing to accurately report payments, or committing any act of fraud or misrepresentation are also grounds for preventing renewal. Defaulting on material obligations to Eos Worldwide or affiliates on three or more occasions, even if cured, also constitutes a material breach.
Additional actions that constitute a material breach include failing to commence operation of the franchise within the prescribed time, failing to pay taxes when due, or making any misrepresentation on the franchise application or supporting documentation. Unauthorized use of the Eos Worldwide Franchise System, Client Data, the Marks, and the Intellectual Property is also considered a material breach.
Finally, franchisees must complete all reasonable refurbishment, modernization, maintenance, and upgrading necessary to bring their franchise into full compliance with the current Franchise System Standards prior to the expiration of the current term. Prospective franchisees should carefully review the entire franchise agreement and related documents to fully understand all conditions that could prevent renewal.