Does Eos Worldwide guarantee that the required insurance will provide adequate coverage?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not represent or warrant that any insurance that you are required to purchase, or which we procure on your behalf, will provide adequate coverage for you.
The requirements of insurance specified in this Agreement and in the Operations Manual are for our protection.* If you believe that you should not be required to carry an identified type of insurance or otherwise comply with our minimum insurance requirements, you must submit a written waiver request and obtain a written waiver from us.
Until such time as we notify you in writing of our waiver, you are obligated to comply with all minimum insurance requirements.
- (c) If you fail to obtain or maintain the required insurance coverage, we may purchase it for you and require you to pay to us the premium cost plus up to 20% of such costs and expenses as an administrative fee for doing so.
We may change or increase insurance requirements, upon reasonable notice to you, to conform to reasonable local business practices or other relevant changes in circumstances or for other commercially reasonable business reasons we deem appropriate.
You must use reasonable efforts to ensure that each insurance policy required by us requires the insurer to notify us in writing if the policy is cancelled or expires and you must give us at least thirty (30) days prior written notice before any such event occurs.
The insurance must be primary coverage without the right of contribution from any of our insurance.
- (d) Insurance policies required under this Agreement and the Operations Manual must name, as permitted by applicable law, us, our affiliates and our and their respective officers, directors, managers, partners, members, affiliates, subsidiaries, employees, and agents as additional insureds, through an endorsement or otherwise, as provided in the Operations Manual.
Additional insured coverage must also be primary without the right of contribution from any of our insurance and must be as broad as the coverage provided to the franchisee as the named insured.
Additional insured coverage shall include coverage for ongoing and completed operations, and shall not be limited to vicarious liability and shall extend to (and there shall be no endorsement limiting coverage for) the negligent acts, errors or omissions of us or other additional insureds.
(e) Your obligation to obtain and maintain insurance shall not be limited in any way by reason of any insurance that may be maintained by us, nor shall the existence or non-existence of any insurance relieve you of liability under the indemnification provisions set forth in this Agreement.
(f) You shall provide, annually, or more frequently if requested by us, evidence of insurance showing compliance with our insurance requirements, in the manner we provide in the Operations Manual or otherwise designate from time to time.
Our receipt, review or verification of certain elements of your insurance does not in any way reduce or eliminate your obligations to fully comply with all of the insurance requirements set forth in this Agreement and/or in the Operations Manual.
It is your sole obligation to fully comply with these insurance requirements and it is your sole obligation to confirm with your insurance providers that your policies are in compliance.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide does not guarantee that the required insurance will provide adequate coverage for franchisees. The FDD states that Eos Worldwide does not represent or warrant that any insurance a franchisee is required to purchase, or which Eos Worldwide procures on the franchisee's behalf, will provide adequate coverage.
Eos Worldwide specifies minimum standards for insurance coverage in the franchise agreement and operations manual, but franchisees are responsible for determining if additional coverage is necessary or appropriate for their specific franchise. Franchisees are encouraged to consult with their own insurance agents, brokers, legal counsel, or other insurance advisors to assess their needs.
It is the franchisee's sole obligation to ensure they fully comply with all insurance requirements and to confirm with their insurance providers that their policies are compliant. If a franchisee fails to obtain or maintain the required insurance coverage, Eos Worldwide has the right to purchase the insurance for the franchisee and charge the franchisee the premium cost plus up to 20% of such costs and expenses as an administrative fee.