What is the duration of the surety bond coverage that Eos Worldwide must maintain in Maryland?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
A surety bond has been obtained by the Franchisor. The Maryland Securities Commissioner has made the issuance of the Franchisor's permit contingent upon the Franchisor maintaining surety bond coverage acceptable to the Administrator until (a) all Maryland franchisees have (i) received all initial training that they are entitled to under the Franchise Agreement or Franchise Disclosure Document, and (ii) are open for business; or (b) the Administrator issues written authorization to the contrary.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the Maryland Securities Commissioner requires Eos Worldwide to maintain a surety bond. This bond ensures that Eos Worldwide complies with its obligations to franchisees in Maryland.
The surety bond coverage must be maintained until one of two conditions is met. First, Eos Worldwide must maintain the bond until all Maryland franchisees have (1) received all initial training they are entitled to under the Franchise Agreement or Franchise Disclosure Document, and (2) are open for business. Alternatively, the coverage must be maintained until the Administrator (presumably the Maryland Securities Commissioner) issues written authorization to discontinue the bond.
This requirement protects Maryland franchisees by providing a financial guarantee that Eos Worldwide will fulfill its contractual obligations. It ensures that franchisees receive the training and support necessary to start their business. Prospective franchisees in Maryland should confirm with Eos Worldwide and the Maryland Securities Commissioner that the surety bond is currently in place and understand the process for making a claim against the bond if necessary.