How does Eos Worldwide define 'disability' in the context of transferring the franchise agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) For Business Entities to Existing Members Only.As a Business Entity, only Transfers of any existing equity of the Business Entity to other existing current owners may qualify as a "Permitted Transfer" and may qualify only to the extent that there is no change to the Implementer as a result of such Transfer, and the Implementer continues to qualify with each of the conditions set forth in Section 2.8 of this Agreement.
If a proposed Transfer fails to qualify as a Permitted Transfer, then such Transfer shall be subject to the conditions set forth to the terms and conditions of this Section 15 of the Franchise Agreement without regard to this Section 15.6.
15.7 Operation and Transfers Upon Death, Disability or Other Extraordinary Circumstances.
Upon your death or disability, you or your executor, administrator, or other personal representative must within a reasonable time, not to exceed one hundred and eighty (180) days from the date of death or disability, Transfer this Agreement to a new Implementer who must be approved by us. For purposes of this Agreement, the term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent the Implementer from managing and operating the Franchise for an extended period of time. We recognize that our franchisees may also encounter other extraordinary circumstances that may require extended time away from their Franchised Business. We may also in our reasonable discretion create a policy that is intended to provide franchisees with an ability to request a leave of absence or hiatus for those extraordinary circumstances that may or may not qualify as a disability. Leaves of absence or other hiatuses, as applicable, may be granted on a case-by-case basis, in our sole discretion, subject to applicable law. Pending the Transfer to a new Implementer as provided above or return from a leave of absence or hiatus, as the case may be, if, in our judgment, the Franchise is not being managed properly, we have the right, but not the obligation, to exercise our Step-In Rights pursuant to Section 17.5(b) below during any such period.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the term 'disability' is specifically defined within the context of franchise agreement transfers. If a franchisee experiences a mental or physical disability, impairment, or condition that is reasonably expected to prevent them from managing and operating the franchise for an extended period, it is considered a 'disability' under the agreement.
Upon the occurrence of death or disability, the franchisee or their representative (executor, administrator, etc.) has a limited time frame of 180 days to transfer the agreement to a new Implementer approved by Eos Worldwide. Failure to transfer the agreement within this period constitutes a material breach of the agreement.
Eos Worldwide may also, at its discretion, create a policy that allows franchisees to request a leave of absence or hiatus for extraordinary circumstances, which may or may not qualify as a disability. These leaves of absence are granted on a case-by-case basis. During the period pending transfer or return from leave, Eos Worldwide retains the right, but not the obligation, to exercise its Step-In Rights if the franchise is not being managed properly. The initial transfer fee is waived in the event of death or disability.