Are Eos Worldwide franchisees currently required to participate in any purchasing or distribution cooperatives?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
e right to discontinue, terminate, modify, or amend the referral program at any time with notice to our franchisees.
There are currently no purchasing or distribution cooperatives in which you must participate, though we reserve the right to require that in the future.
We reserve the right, as permitted by applicable law, under the Franchise Agreement to receive incentives, volume rebates, allowances, consideration, and other benefits from suppliers and manufacturers, including Approved Suppliers, directly or indirectly, as a result of sales of supplies, products or services to you by reason of such supplier, provider or manufacturer furnishing supplies, products or services to you and whether or not such supplies, products or services are required to be purchased in connection with the operation of the Franchised Business. There are currently no such arrangements in place.
We do derive revenue from your required purchases. In 2024, EOS Worldwide, as the franchisor,
derived revenues from sales of required purchases by franchisees of $3,309,031, which accounted for approximately 13.90% franchisors total revenues of $23,813,492. This amount does not include revenue from providing required training for new franchisees. While neither we nor our affiliates currently derive any revenues from purchases or leases we require; we and our affiliates sell certain other supplies, products and services to franchisees from time to time that are not required, and therefore derive revenue from those sales. In the future, we and our affiliates may receive other types of revenues, material benefits, and other consideration as described above from your purchase of supplie
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–31)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, franchisees are not currently required to participate in any purchasing or distribution cooperatives. However, Eos Worldwide retains the right to mandate participation in such cooperatives in the future.
Eos Worldwide also has the ability to negotiate purchase arrangements with suppliers for the benefit of franchisees, although they are not doing so currently. Franchisees are restricted from reshipping, transshipping, or redistributing Eos Worldwide services, products, or other items purchased from Eos Worldwide or approved suppliers to any third party, including other franchisees, without prior written consent.
While not related to cooperatives, Eos Worldwide does derive revenue from required franchisee purchases. In 2024, Eos Worldwide's revenue from these required purchases totaled $3,309,031, which represented approximately 13.90% of the franchisor's total revenues of $23,813,492. This figure excludes revenue from required training for new franchisees. Eos Worldwide and its affiliates may also sell non-required supplies, products, and services to franchisees, generating additional revenue.