Does the Eos Worldwide franchise agreement include a waiver of class actions?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
20.13 Waiver of Class Actions.
Each of the parties hereby irrevocably waives the right to litigate on a class action basis, in any action, proceeding, or counterclaim, whether at law or in equity, brought by any party.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
Yes, according to the 2025 Eos Worldwide Franchise Disclosure Document, the franchise agreement includes a waiver of class actions. Specifically, both Eos Worldwide and the franchisee irrevocably waive the right to participate in class action lawsuits against each other. This means that any legal disputes must be pursued individually rather than as part of a group.
This waiver has significant implications for prospective franchisees. It prevents them from joining forces with other franchisees to collectively sue Eos Worldwide, even if they have similar grievances. While individual lawsuits are still possible, they can be more expensive and time-consuming than class action suits, potentially deterring franchisees from pursuing legal action.
Class action waivers are becoming increasingly common in franchise agreements. They are generally intended to protect the franchisor from large-scale litigation. However, franchisees should carefully consider the implications of this waiver and seek legal advice to understand their rights and options in case of a dispute with Eos Worldwide.
In addition to the class action waiver, the Eos Worldwide franchise agreement also includes a waiver of jury trial. Both parties agree to waive their right to a jury trial in any action, proceeding, or counterclaim. This means that any disputes will be resolved by a judge rather than a jury.