Does Eos Worldwide derive revenue from required purchases made by franchisees?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
ased in connection with the operation of the Franchised Business. There are currently no such arrangements in place.
We do derive revenue from your required purchases. In 2024, EOS Worldwide, as the franchisor,
derived revenues from sales of required purchases by franchisees of $3,309,031, which accounted for approximately 13.90% franchisors total revenues of $23,813,492. This amount does not include revenue from providing required training for new franchisees. While neither we nor our affiliates currently derive any revenues from purchases or leases we require; we and our affiliates sell certain other supplies, products and services to franchisees from time to time that are not required, and therefore derive revenue from those sales. In the future, we and our affiliates may receive other types of revenues, material benefits, and other consideration as described above from your purchase of supplie
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–31)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, Eos Worldwide does derive revenue from required purchases made by its franchisees. In 2024, Eos Worldwide's revenue from these required purchases totaled $3,309,031, which accounted for approximately 13.90% of the franchisor's total revenues of $23,813,492. This figure excludes revenue from required training for new franchisees. While Eos Worldwide and its affiliates do not currently derive revenue from required purchases or leases other than the required purchases, they do sell other non-required supplies, products, and services to franchisees. In the future, Eos Worldwide and its affiliates may receive other types of revenues from franchisee purchases of required supplies, products, and services. These may include revenues derived through books that Eos Worldwide may author.
Franchisees are required to purchase Leadership Team Manuals, designated EOS branded session materials and supplies, and business cards from Eos Worldwide through the EOS Online Store. Franchisees must also adhere to the Franchise System Standards, which may require purchasing certain additional items exclusively from Eos Worldwide, its affiliates, or approved suppliers. The costs of purchases from Approved Suppliers or according to Franchise System Standards may range from 3% to 10% of the total cost of establishing the Franchised Business and approximately 3% to 15% of the total cost of operating the Franchised Business after that time.
This revenue stream from required purchases is a common practice in franchising, allowing franchisors to maintain brand consistency and quality control. However, it also means that franchisees have limited flexibility in sourcing certain products and services, potentially impacting their costs and profit margins. Prospective franchisees should carefully consider these required purchases and their associated costs when evaluating the overall financial viability of an Eos Worldwide franchise.