Must an Eos Worldwide franchisee be in good standing to renew their franchise agreement?
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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, a franchisee must be in good standing to renew their franchise agreement. Specifically, the franchise agreement may be renewed for up to two 3-year terms if the franchisee is in good standing and Eos Worldwide is still offering and selling new franchises.
In addition to being in good standing, Eos Worldwide requires that the franchisee fulfill several other conditions to renew their agreement. These conditions include providing prior notice as required in the Franchise Agreement, completing all necessary maintenance and upgrades to Eos Worldwide's satisfaction, satisfying all monetary obligations to Eos Worldwide, its affiliates, and approved suppliers, and executing the then-current form of the Franchise Agreement. The franchisee must also satisfy the then-current requirements for new franchisees and training, and both the franchisee and any co-owners must sign a general release.
It is important to note that the then-current standard Franchise Agreement may contain materially different terms and conditions than the original Franchise Agreement. This means that when renewing, franchisees may be subject to new requirements or obligations that were not part of their initial agreement. Prospective franchisees should carefully consider these renewal requirements and the potential for changes in the Franchise Agreement when evaluating the Eos Worldwide franchise opportunity.