Who determines how contributions to the Brand Development Fund are spent for Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- you will be required to contribute to it;
- if we establish franchisor-owned businesses, then they will be required to contribute to the Brand Development Fund on the same basis as the franchisees;
- our Brand Development Fund will be used for international, national and regional advertising, publicity and promotion relating to EOS and the EOS Franchise System;
- we will have the right to determine the manner in which the contributions to the Brand Development Fund are spent;
- we could use any form of media we determine is appropriate to conduct the advertising and may utilize an in-house advertising department or outside agencies;
- some portion of the Brand Development Fund may be used for creative concept production, website development, marketing surveys, test marketing and related purposes;
- we will have the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation;
- we will also have the right to determine, in our sole discretion, the composition of all geographic and market areas for the implementation of these advertising and promotional activities'
- we will have the right to reimburse ourselves out of the Brand Development Fund for the total costs (including indirect costs) of developing, producing and distributing any advertising materials and administering the Brand Development Fund (including without limitation, legal, auditing and accounting fees, salaries of in-house advertising personnel and outside advertising agencies and other expenses incurred in connection with collecting any Brand Development Fund Fees or other amounts);
- funds from the Brand Development Fund paid will be kept separate and distinct and will be accounted for separately from our other funds; these funds will not be used to defray any of our general operating expenses, except as described in the paragraph above;
- any sums paid to the Brand Development Fund that are not spent in the year they are collected will carry over to the following year;
- within one hundred twenty (120) days of the fiscal year-end, we will prepare, and furnish to you upon written request, an annual, unaudited statement of funds collected and costs incurred. (Section 11 Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 32–43)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, Eos Worldwide has the right to determine how contributions to the Brand Development Fund are spent. The Brand Development Fund will be used for international, national, and regional advertising, publicity, and promotion relating to EOS and the EOS Franchise System. Eos Worldwide has the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation.
Eos Worldwide also has the right to determine the composition of all geographic and market areas for the implementation of these advertising and promotional activities. They can reimburse themselves from the Brand Development Fund for the total costs of developing, producing, and distributing any advertising materials and administering the fund, including legal, auditing, accounting fees, salaries of in-house advertising personnel, and outside advertising agencies. Funds from the Brand Development Fund will be kept separate and distinct from Eos Worldwide's other funds and will not be used to defray general operating expenses, except as described above.
Any unspent funds in the Brand Development Fund will carry over to the following year. Within 120 days of the fiscal year-end, Eos Worldwide will prepare and furnish to franchisees upon written request an annual, unaudited statement of funds collected and costs incurred. While Eos Worldwide may form an advisory council to assist with various components of the EOS Franchise System, including marketing and promotion, the advisory council will act in an advisory capacity only and will not have decision-making authority. Eos Worldwide reserves the right to terminate the Brand Development Fund at any time, ensuring that all monies are spent for advertising or promotional purposes or returned to contributors in accordance with the Franchise Agreement.