What happens to unspent Brand Fund contributions at the end of the year for Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Any sums paid to the Brand Fund that are not spent in the year they are collected will carry over to the following year. For any fiscal year in which we operate or maintain a Brand Fund to which you contribute, then within one hundred twenty (120) days of the fiscal year-end, we will prepare, and furnish to you upon written request, an annual, unaudited statement of funds collected and costs incurred.
- (f) Except as expressly provided in this Section, we assume no direct or indirect liability or obligation to you with respect to collecting amounts due to the Brand Fund.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, any sums paid to the Brand Fund that are not spent in the year they are collected by Eos Worldwide will carry over to the following year. Within 120 days of the fiscal year-end, Eos Worldwide will prepare and furnish to franchisees upon written request an annual, unaudited statement of funds collected and costs incurred for any fiscal year in which they operate or maintain a Brand Fund to which franchisees contribute.
This means that if the Brand Fund has a surplus at the end of the year, those funds are not returned to the franchisees. Instead, Eos Worldwide retains those funds for use in the following year's marketing and promotional activities. This is a fairly common practice in franchising, as it allows the franchisor to build up a reserve for larger, longer-term marketing initiatives.
It is important to note that the statement provided to franchisees is unaudited, meaning that its accuracy has not been verified by an independent accounting firm. While this is not necessarily a cause for concern, prospective franchisees may want to inquire about Eos Worldwide's policies and procedures for ensuring the accuracy of the Brand Fund financial statements. Franchisees have no direct liability regarding the collection of Brand Fund contributions.