What is an Eos Worldwide franchisee prohibited from doing that is competitive or creates a conflict of interest?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
tially create a conflict of interest with the EOS Worldwide brand or your business or otherwise materially impact your ability to operate your EOS Implementer business, you should go through an Item
16 review.
Unlike many franchise concepts, you are not required to operate your EOS business full-time; in fact, one of the benefits of EOS and what is a core principle to living The EOS Life is that even as an EOS Implementer, you have time for your other passions. But that does not mean you can essentially do whatever you want. As a franchisee/Implementer, you may not engage in activity that is competitive or that would create a conflict of interest with your business.
This does not mean that any income producing venture must go through this process. There are of course various types of opportunities and investments that would have no tangible impact on your Franchised Business. For example, a purely passive investment unrelated to business operating systems should not require an "Item 16" review.
But those that do or might, we expect that you will clear those with us as part of this process.
When considering your next steps, please consider these simple rules:
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- Don't damage the EOS brand, use EOS Intellectual Property, or compete with either EOS Worldwide or the EOS Implementer Community
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- Don't use the EOS brand or any EOS brand assets without our express written permission, and
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- Ask us for input before investing any time or money.
We require all of our franchisees to participate in our Client Satisfaction Program described in Item 8. You must offer all the authorized Products and Services at your Franchised Business unless we otherwise agree in writing.
We have the right to change the types of authorized Products and Services, and there are no limits on our right to do so, although we will provide you with notice when changes become effective. You may not offer for sale any products or perform any services that we have not approved, nor may you engage in any other business enterprise through the entity that you use to operate the Franchised Business without our prior written consent.
Other than as we expressly authorize in writing or otherwise designate in the Operations Manual, you may not in any manner purchase, reship, sell, transship, or re-distribute any of the EOS Worldwide materials or other items purchased from us to any third party, including any current or former franchisee. Franchisees may however provide EOS Worldwide materials or other items purchased from us to other current franchisees without our consent provided such items are provided without any mark-up.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 53–54)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, franchisees are restricted from engaging in activities that are competitive or create a conflict of interest with their Eos Worldwide business. While Eos Worldwide does not require franchisees to operate their business full-time, franchisees cannot engage in any activity that damages the Eos Worldwide brand, uses Eos Worldwide intellectual property, or competes with Eos Worldwide or the Eos Implementer Community. Franchisees also cannot use the Eos Worldwide brand or any brand assets without express written permission.
Eos Worldwide requires franchisees to offer each of the services and products specified for sale through the franchised business in accordance with the Franchise Systems Standards. Franchisees cannot offer other products or services without prior written approval. Franchisees are only permitted to cross-sell or refer clients to other providers in the manner described in the Operations Manual.
To prevent potential conflicts of interest, Eos Worldwide created guidelines set forth in the Operations Manual defining the kind of outside opportunities that are acceptable, and those that are not. Anytime a franchisee has created or pursued, or is even in the planning stages of creating or pursuing, a separate venture alongside their Eos Implementer Franchised Business, then they may be required to clear it with Eos Worldwide by submitting for an "Item 16" review. As part of the evaluation process for new franchisees, Eos Worldwide may ask a series of questions designed to determine whether they are engaged in any outside opportunities that could create a conflict of interest.