When is an Eos Worldwide franchisee required to submit for an 'Item 16' review?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
To summarize this process and our guidelines, essentially anytime you have created or pursued, or are even in the planning stages of creating or pursuing, a separate venture alongside your EOS Implementer Franchised Business, then you may be required to clear it with us by submitting for what we refer to as our "Item 16" review. As part of this evaluation process for new franchisees, we may ask you a series of questions designed to determine whether you are engaged in any outside opportunities that could create a conflict of interest. These questions are referred to as our "Item 16" review and is part of our screening process.
Not every opportunity requires an Item 16 review. Generally speaking, if the opportunity could potentially 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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 53–54)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, an 'Item 16' review is required when a franchisee has created, pursued, or is in the planning stages of creating or pursuing a separate venture alongside their Eos Implementer Franchised Business. This review is designed to prevent potential conflicts of interest. As part of the evaluation process for new franchisees, Eos Worldwide may ask a series of questions to determine whether a franchisee is engaged in any outside opportunities that could create a conflict of interest.
However, not every opportunity necessitates an 'Item 16' review. Generally, if the opportunity could potentially create a conflict of interest with the Eos Worldwide brand or the franchisee's business, or if it could materially impact the franchisee's ability to operate their Eos Implementer business, an 'Item 16' review should be conducted. For example, a purely passive investment unrelated to business operating systems should not require an 'Item 16' review.
Eos Worldwide emphasizes that franchisees should seek input before investing time or money in outside opportunities that might conflict with the brand. Franchisees must not damage the Eos brand, use Eos intellectual property, or compete with either Eos Worldwide or the Eos Implementer Community. Additionally, franchisees are prohibited from using the Eos brand or any Eos brand assets without express written permission.
Unlike many franchise concepts, Eos Worldwide does not require franchisees to operate their business full-time, allowing them time for other passions. However, franchisees may not engage in activity that is competitive or that would create a conflict of interest with their business. Eos Worldwide expects franchisees to clear any opportunities that might create a conflict of interest with them as part of the 'Item 16' review process.