Is an Eos Worldwide franchisee entitled to refunds of fees upon termination?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section Franchise Agreement | in Summary |
|---|---|---|
| a. | 2.2 | Five (5) year term ending on the last day of the calendar month |
| Length of the franchise term | following your five-year anniversary. | |
| b. Renewal or extension of the term | 2.3 | The franchise may be renewed for up to two 3-year year terms if you are in good standing and we are still in the business of offering and selling new EOS Worldwide franchises. |
| c. Requirements for franchisee to renew or extend | 2.3 | Requirements include: (i) you provide us the prior notice required in the Franchise Agreement; (ii) you complete, to our satisfaction all maintenance and upgrading necessary we require; (iii) you are in good standing; (iv); you satisfy all monetary obligations you owe us, our affiliates, and our Approved Suppliers; (v) you execute our then current form of Franchise Agreement; (vi) you satisfy our then-current requirements for new franchisees and our training requirements; (vii) you and your applicable co-owners sign a general release; and (viii) we are still in the business of offering and selling new EOS franchises. The then-current standard Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. |
| d. Termination by franchisee | 17.1 | You may terminate at any time with 60 days' prior written notice. You may also terminate prior to registering for Boot Camp with at least 10 days' prior written notice. To do so, you and your applicable co-owners must execute a full release and you must be in good standing and must pay your monthly fees until your termination date. Except as described above, you are not entitled to any refunds of any fees. Provisions regarding termination by us are subject to state law. |
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 franchisee's entitlement to refunds of fees upon termination is limited. The FDD states that a franchisee may terminate the agreement at any time with 60 days' prior written notice, or with at least 10 days' prior written notice before registering for Boot Camp. To do so, the franchisee and their co-owners must execute a full release, be in good standing, and pay monthly fees until the termination date.
However, the critical point is that, except for the specific scenario of terminating prior to Boot Camp registration, the franchisee is generally not entitled to any refunds of fees upon termination. This means that any initial franchise fees or other payments made to Eos Worldwide are typically non-refundable if the franchisee decides to terminate the agreement.
This policy is fairly standard in the franchise industry, as initial fees are often used to cover the franchisor's expenses in setting up the franchise and providing initial training and support. Prospective Eos Worldwide franchisees should carefully consider this non-refundability clause before signing the Franchise Agreement and making any payments. Understanding the conditions under which termination is possible and the financial implications is crucial for making an informed decision.