Does the definition of 'competing business' for Eos Worldwide include businesses that provide outsourced entrepreneurial training similar to that provided by Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Agreement, the term "competing business" shall mean any business that, directly or indirectly, anywhere in the world (i) owns, operates, or otherwise carries on a non-EOS business operating system, (ii) provides training materials, resources, or support for any non-EOS business operating system, (iii) provides outsourced entrepreneurial training, coaching, or facilitation type services or products similar to those provided by EOS or any EOS franchisee or implementer, and/or (iv) otherwise competes with Franchisor, its affiliates or the EOS Franchise System (including through franchising) in general, as such businesses have been conducted, are proposed to be conducted or are being conducted, in each case, during the Term, and the term "competitor" shall mean any person or entity located anywhere in the world which (x) owns, operates, or otherwise engages in a competing business, or (y) provides training materials, resources, or support for any competing business.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide's definition of a "competing business" includes businesses that provide outsourced entrepreneurial training, coaching, or facilitation type services or products similar to those provided by Eos Worldwide or any of its franchisees or implementers. This definition applies to any such business operating anywhere in the world.
This means that during the term of the Franchise Agreement, an Eos Worldwide franchisee is restricted from owning, operating, or being involved with any business that offers similar entrepreneurial training, coaching, or facilitation services. This restriction is in place to protect Eos Worldwide's business model and market position.
After the franchise term ends, there are still restrictions. For one year after the termination or expiration of the agreement, the franchisee is prohibited from engaging in a competing business, unless Eos Worldwide provides written permission otherwise. This post-term restriction further protects Eos Worldwide's interests by preventing former franchisees from immediately using their experience and knowledge gained from the franchise to compete against the brand.