Does the Eos Worldwide Franchise Agreement include a Form of General Release?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement requires that the franchise be governed by the laws of the State of Delaware, such a requirement will not be considered a waiver of any right conferred upon the Franchisee by Article 33 of the New York State General Business Law and the regulations issued thereunder.
In all other respects, the Franchise Agreement will be construed and enforced with its terms.
FOR THE STATE OF NORTH DAKOTA
The North Dakota Securities Commission requires that certain provisions contained in the Franchise Agreement for EOS Worldwide Franchising, LLC be amended to be consistent with North Dakota Law, including the North Dakota Franchise Investment Law, North Dakota Century Code Addendum, Chapter 51-19, Sections 51-19-01 et seq. Such provisions in the Agreement are hereby amended as follows:
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- General Release. Sections 2.3 and 15.5(f) require Franchisee to sign a general release as a condition of renewal or transfer of the franchise and Section 17.1 requires Franchisee to sign a general release as a condition to exercising its right to terminate the Franchise Agreement; such release shall exclude claims arising under the North Dakota Franchise Investment Law.
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- Covenant Not to Compete. Covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable in the State of North Dakota except in limited instances as provided by law.
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- General Release.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the standard Franchise Agreement requires franchisees to sign a general release under certain conditions. Specifically, Sections 2.3(a) and 15.5(f) of the agreement require a franchisee to sign a general release as a condition of renewal or transfer of the franchise. Additionally, Section 17.1 requires a franchisee to sign a general release as a condition of exercising their right to terminate the Franchise Agreement. These releases are intended to protect Eos Worldwide from future claims by the franchisee.
However, the FDD also notes that these general release requirements are subject to certain state laws. For example, for franchisees in North Dakota, any provision requiring a general release upon renewal of the Franchise Agreement is deleted entirely. For franchisees in New York, Rhode Island, Maryland, Hawaii and Indiana, the release must exclude claims arising under their respective state's franchise laws. This means that while Eos Worldwide's standard agreement includes a general release, its enforceability and scope are limited by state-specific regulations designed to protect franchisees.
For a prospective Eos Worldwide franchisee, this means carefully reviewing the specific amendments to the Franchise Agreement applicable to their state. They should consult with an attorney to understand the extent to which the general release provision applies to them and what rights they may be waiving. It is also important to note that the FDD explicitly states that the Franchise Agreement will be construed and enforced with its terms in all other respects, implying that the general release is a standard part of the agreement unless specifically amended by state law.