What constitutes misconduct that could lead to immediate termination of the Eos Worldwide franchise agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at any time, terminate this Agreement effective immediately upon written notice if you:
(a) are convicted by a trial court of, plead no contest or enter into a consent decree in connection with any violation of the rules or regulations of franchise laws, or any local, state, provincial, federal, national or international securities laws, or any felony or any other crime or offense that is likely to adversely affect your reputation, our reputation or otherwise involving any fraud or breach of trust, or to any crime or offense that may adversely affect the reputation of the goodwill associated with the Marks or the EOS Franchise System; or
(b) engage in any misconduct or become involved in any situation or occurrence which may or could unfavorably affect your or our reputation or the goodwill associated with the Marks or the EOS Franchise System in a material manner or that otherwise brings you, us, our affiliates, or another EOS Implementer or any of the foregoing's respective businesses into actual or potential public disrepute, contempt, scandal, or ridicule (including, but not limited to, child abuse or other mistreatment, theft of customer or Client property, health or safety hazards, drug or alcohol problems, sexual harassment, discrimination, other acts of moral turpitude, or allowing unlawful activities or unauthorized or illegal items to be used or distributed in connection with the Franchise), or information becomes public of such conduct by you in the past; or
(c) make any direct or indirect Transfer in violation of Section 15 of this Agreement, or grant a sub-franchise or otherwise sublicense your rights and obligations under this Agreement; or
(d) become insolvent or make a general assignment for the benefit of creditors; if a petition in bankruptcy is filed by you or such a petition is filed against and not opposed by you; are adjudicated bankrupt or insolvent; if a bill in equity or other proceeding for the appointment of a receiver of you or other custodian for your Franchise or assets is filed and consented to by you; if a receiver or other custodian (permanent or temporary) of your assets or property, or any part thereof, is appointed by any court of competent jurisdiction; if proceedings for a composition with creditors under any state or federal law should be instituted by or against you; if a final judgment remains unsatisfied or of record for thirty (30) days or longer (unless a supersedeas bond is filed); if you are dissolved; if execution is levied against your Franchise or property; if suit to foreclose any lien or mortgage against the premises or equipment is instituted against you and not dismissed within thirty (30) days; or if the real or personal property of the Franchise shall be sold after levy thereupon by any sheriff, marshal, or constable; or if any similar event occurs to you under applicable law; or
(e) fail to timely and successfully complete Boot Camp or any other mandatory training; or
(f) for Professional EOS Implementers, fail to meet the Minimum Performance Requirements for a Measurement Period pursuant to Section 10.16 of this Agreement, and fail to attend and actively participate in required Remedial Training as a result thereof pursuant to Section 10.16 of this Agreement; or
(g) breach Section 16 of this Agreement; or
(h) knowingly fail to accurately report payments to us, any affiliate, and/or any
supplier/creditor of ours or you commit any act or omission constituting fraud, misrepresentation or similar act or omission, whether with respect to us, any related entities and/or any third party; or
- (i) default, on three (3) or more separate occasions within any term of your Franchise, on any of your material obligations to us or an affiliate, whether or not cured (including failure to adhere to any of our Core Values), and/or other third parties, the Operations Manual or otherwise;
- (j) fail to commence operation of the Franchise within the time prescribed in Section 10.6 of this Agreement; or
- (k) fail to pay any taxes when due; or
- (l) make any misrepresentation on your franchise application or supporting documentation.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide can terminate the franchise agreement immediately upon written notice if a franchisee is convicted of violating franchise, securities, or other laws, or commits a felony or any offense involving fraud or breach of trust that could negatively impact the reputation of the franchisee, Eos Worldwide, or the EOS Franchise System.
Eos Worldwide can also terminate the agreement if a franchisee engages in misconduct or becomes involved in any situation that could unfavorably affect their reputation, Eos Worldwide's reputation, or the goodwill associated with the Marks or the EOS Franchise System. This includes actions that bring the franchisee, Eos Worldwide, its affiliates, or other EOS Implementers into public disrepute, contempt, scandal, or ridicule. Examples of such misconduct include child abuse, theft of customer property, health or safety hazards, drug or alcohol problems, sexual harassment, discrimination, acts of moral turpitude, or allowing unlawful activities or unauthorized items to be used in connection with the franchise.
Further reasons for immediate termination include violating transfer restrictions, becoming insolvent, failing to complete required training, not meeting minimum performance requirements as a Professional EOS Implementer and failing to attend remedial training, breaching Section 16 of the agreement, knowingly failing to accurately report payments, defaulting on obligations three or more times, failing to commence operations within the prescribed time, failing to pay taxes when due, or making misrepresentations on the franchise application.