For an Eos Worldwide franchise transfer, must the transferee pass a background check?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
rior written consent before transferring any | | Franchisor approval of | | interest in the assets of the Franchised Business, which such consent | | transfer by franchisee | | shall not be unreasonably withheld. |
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| m. Conditions for franchisor approval of transfer | 15.5 | Conditions include you are in full compliance with the Franchise Agreement and: (i) the transferee meeting or exceeding the approval criteria including passing a background check and holding all required certifications necessary to provide the Services all at our sole discretion; (ii) you pay all amounts owed to us, our affiliates or to third-party creditors and have submitted all required reports and statements; (iii) the transferee enters into our then-current form of Franchise Agreement for new franchisees for the remainder of the current term under the Franchise Agreement (with any remaining renewal terms available) and any required related agreements (or an assignment and assumption agreement in a form reasonably acceptable to use if we are no longer offering franchises); (iv) the transferee agrees to upgrade the Fra |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, a transferee must pass a background check to be approved for a franchise transfer. Specifically, the transferee must meet or exceed Eos Worldwide's approval criteria, which includes passing a background check and holding all required certifications necessary to provide the services. This is all determined at Eos Worldwide's sole discretion.
In addition to the background check, the transferring franchisee must be in full compliance with the Franchise Agreement. They must also pay all amounts owed to Eos Worldwide, its affiliates, or third-party creditors, and have submitted all required reports and statements. The transferee is required to enter into Eos Worldwide's then-current form of Franchise Agreement for new franchisees for the remainder of the current term, including any remaining renewal terms.
Furthermore, the transferee must agree to upgrade the franchised business to conform to Eos Worldwide's then-current Franchise System Standards and attend Boot Camp at the current Boot Camp fees before performing any Implementer Services. A $5,000 transfer fee is also required. These conditions ensure that the new franchisee meets Eos Worldwide's standards and is fully trained to maintain the quality and consistency of the franchise system.