Does the Eos Worldwide franchise agreement allow for deductions from payments for bank charges?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
(f) We may modify, change, eliminate or amend the terms of the Client Satisfaction Program or other network programs on thirty (30) days' notice to you.
10.11 Payment of Debts.
You are solely responsible for selecting, retaining and paying your Personnel; the payment of all invoices for the purchase of goods for use in the Franchise; and determining whether, and on what terms, to obtain any financing or credit which you deem advisable or necessary for the conduct of the Franchise. You shall pay all current obligations and liabilities to suppliers, lessors and creditors on a timely basis and indemnify us in the event that we elect to pay any of your obligations in order to preserve the relationship between Approved Suppliers and EOS Franchise System franchisees. You shall make prompt payment of all local, state, provincial, federal, national or international taxes, including individual and corporate taxes, sales and use taxes, franchise taxes, goods and services taxes, gross receipts taxes, employee withholding taxes and other remittances, FICA taxes, and personal property and real estate taxes, arising from your operation of the Franchise. You shall indemnify us in the event that we are held responsible for these taxes and other amounts.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
Based on the 2025 Eos Worldwide Franchise Disclosure Document, there is no mention of deductions from franchisee payments for bank charges. The document outlines various financial responsibilities of the franchisee, including the payment of personnel, invoices, and taxes. Specifically, section 10.11 states that the franchisee is responsible for paying their personnel, invoices for goods used in the franchise, and determining financing or credit terms. Additionally, the franchisee must promptly pay all local, state, federal, and international taxes arising from the franchise's operation and indemnify Eos Worldwide if they are held responsible for these taxes.
However, the FDD does not explicitly address whether Eos Worldwide can deduct bank charges or other fees from payments owed to the franchisee. The agreement does emphasize the franchisee's responsibility for managing their own finances and obligations, suggesting that any such deductions would need to be clearly stated and agreed upon in advance. Without specific language allowing for these deductions, it would be unusual for Eos Worldwide to implement such a practice.
Therefore, a prospective Eos Worldwide franchisee should seek clarification from the franchisor regarding any potential deductions from payments, including those related to bank charges. It is important to have a clear understanding of all financial obligations and potential deductions before entering into the franchise agreement. This inquiry should be documented and, if possible, included as an addendum to the franchise agreement to avoid future disputes.