When are the fees and costs incurred by Eos Worldwide's exercise of Step-In Rights payable?

According to the 2025 Eos Worldwide Franchise Disclosure Document, if Eos Worldwide exercises its Step-In Rights, franchisees must pay all reasonable fees and costs incurred as a consequence. These costs include wages and personnel costs. These fees and costs are payable on demand and will be taken from the Franchised Business proceeds.

Eos Worldwide may exercise Step-In Rights if they determine the operation of the franchise is in jeopardy or if the franchisee is in default of the agreement. This allows Eos Worldwide to operate the franchise temporarily to prevent interruption and harm to the Eos Worldwide Franchise System. This may include designating another implementer to provide services on behalf of the franchisee or Eos Worldwide.

The franchisee authorizes Eos Worldwide to operate the franchise for as long as deemed necessary and practical. However, Eos Worldwide only has a duty to utilize commercially reasonable efforts during this period. They will not be liable for any debts, losses, or obligations incurred by the franchise or to any of the franchisee's creditors for any purchases made during the management period.

Franchisees are required to hold harmless Eos Worldwide and its representatives for all actions during the temporary operation, except in cases of gross negligence or willful misconduct by Eos Worldwide. This provision ensures that Eos Worldwide can take necessary actions to maintain the franchise's operation without undue risk of liability, while also protecting the franchisee from potential harm caused by gross negligence or willful misconduct.