What criteria must a transferee meet to be approved as a new franchisee of the Eos Worldwide System?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in full compliance with this Agreement, then subject to the other provisions of this Agreement, we will approve a Transfer that meets all the applicable requirements of this Section:
(a) the transferee meeting or exceeding the approval criteria applied to new franchisees of the System, including, without limitation, passing a background check and having sufficient business experience, aptitude and financial resources to operate the Franchise, all at our sole discretion;
(b) you have paid all amounts owed for purchases from us and all other amounts owed to us, our affiliates
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, a transfer of a franchise is subject to approval by Eos Worldwide. If a franchisee is in full compliance with the Franchise Agreement, Eos Worldwide will approve a transfer if the transferee meets or exceeds the approval criteria applied to new franchisees. These criteria include passing a background check and demonstrating sufficient business experience, aptitude, and financial resources to operate the franchise. The determination of whether these criteria are met is at Eos Worldwide's sole discretion.
In addition to meeting the new franchisee criteria, the franchisee seeking to transfer must have paid all outstanding amounts owed to Eos Worldwide and its affiliates. This ensures that all financial obligations are settled before the transfer can proceed.
These conditions for transfer are typical in franchising, as franchisors like Eos Worldwide need to ensure that any new franchisee is capable of maintaining the brand's standards and financial health. The background check and evaluation of business experience, aptitude, and financial resources are standard practices to protect the franchise system. The requirement to settle all outstanding debts is also a common measure to avoid transferring financial liabilities to the new franchisee or Eos Worldwide.