What happens if an Eos Worldwide franchisee is in default of any material obligations?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) If you are in default of any material obligations under this Agreement, we may, in addition to any other remedy we may have under this Agreement, temporarily restrict your access to all or
part of the EOS related data contained within the Computer System or any Required Technology, until you have cured such default completely.
- (b) Except in the case of your death or disability which is governed by Section 15.7 hereof, if we determine in our sole judgment that the operation of your Franchise is in jeopardy, or if you are in default under this Agreement, then, in addition to our other remedies, to the fullest extent permitted by applicable law and without waiving your obligations under this Agreement, we may discontinue sales of any products and provision of other services to you, including access to our online training platform and other network components, until you cure the default.
In addition, in order to prevent an interruption of the Franchise which would cause harm to the EOS Franchise System and thereby lessen its value, you authorize us to operate your Franchise for as long as we deem necessary and practical, which may include designating another Implementer to provide Implementer Services on your or our behalf, and without waiver of any other rights or remedies which we may have under this Agreement ("Step-In Rights").
In the event of the exercise of the Step-In Rights by us, you agree to hold harmless us, our designees, and our representatives for all actions occurring during the course of such temporary operation except to the extent that you incur losses due to our gross negligence or willful misconduct.
You agree to pay all of our reasonable fees and costs incurred as a consequence of our exercise of our Step-In Rights including wages and personnel costs which are payable on demand out of Franchised Business proceeds.
- (a) If you breach or default any provision of this Agreement, we may (but have no obligation to) take any action to cure the default on your behalf, without any liability to you.
You shall reimburse us for our costs and expenses (including the allocation of any internal costs) for such action, plus up to 10% of such costs and expenses as an administrative fee.
17.4 Cross Defaults, Non-Exclusive Remedies, Etc.
Any default by you under this Agreement may be regarded as a default under any other agreement between us (or any affiliate of ours) and you. Any default by you under any other agreement between us (or any of our affiliates) and you (or any person/company affiliated with you), and any default by you under any obligation to us (or any of our affiliates) may be regarded as a default under this Agreement. Any default by you (or any person/company affiliated with you) under any loan agreement, security agreement, lease, supply or service agreement or otherwise and that was signed in connection with the operation of your EOS Franchise, whether with us, any of our affiliates and/or any third party which is not cured by the time period specified in such agreement may be regarded as a default under this Agreement and/or any other agreement between us (or any of our affiliates) and you (or any of your affiliates). In each of the foregoing cases, we (and any of our affiliates) will have all remedies allowed at law, including termination of your rights (and/or those of any person/company affiliated with you) and our (and/or our affiliates') obligations. No right or remedy which we may have (including termination) is exclusive of any other right or remedy provided under law or equity and we may pursue any rights and/or remedies available.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, if a franchisee defaults on any material obligations under the Franchise Agreement, Eos Worldwide has several potential remedies. Eos Worldwide may temporarily restrict the franchisee's access to the EOS-related data within the computer system or any required technology until the default is resolved. This restriction is in addition to any other remedies Eos Worldwide may have.
In cases where Eos Worldwide determines the franchise's operation is in jeopardy or the franchisee is in default, Eos Worldwide can discontinue sales of products and services, including access to the online training platform and other network components, until the default is cured. To prevent interruption of the franchise, which could harm the Eos Worldwide system, the franchisee authorizes Eos Worldwide to operate the franchise. This includes designating another implementer to provide services on behalf of the franchisee. The franchisee agrees to cover all reasonable fees and costs incurred by Eos Worldwide during this period, including wages and personnel costs, payable from the franchise's proceeds.
Eos Worldwide also has the right, but not the obligation, to take action to cure the default on the franchisee's behalf without any liability. The franchisee is required to reimburse Eos Worldwide for all costs and expenses incurred, including internal costs, plus an administrative fee of up to 10% of those costs and expenses. Furthermore, any default under the Franchise Agreement can be considered a default under any other agreement between Eos Worldwide (or its affiliates) and the franchisee. This also applies vice versa, where a default by the franchisee under any other agreement with Eos Worldwide can be considered a default under the Franchise Agreement. Eos Worldwide retains all remedies available at law, including termination, and no remedy is exclusive of any other.