If an Eos Worldwide franchisee is convicted of a felony, how does that affect the franchise agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at any time, terminate this Agreement effective immediately upon written notice if you:
- (a) are convicted by a trial court of, plead no contest or enter into a consent decree in connection with any violation of the rules or regulations of franchise laws, or any local, state, provincial, federal, national or international securities laws, or any felony or any other crime or offense that is likely to adversely affect your reputation, our reputation or otherwise involving any fraud or breach of trust, or to any crime or offense that may adversely affect the reputation of the goodwill associated with the Marks or the EOS Franchise System; or
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the franchise agreement can be terminated immediately by Eos Worldwide if a franchisee is convicted of a felony. Specifically, this applies if the conviction is by a trial court.
Beyond a felony conviction, the agreement can also be terminated if the franchisee pleads no contest or enters into a consent decree related to violations of franchise laws, securities laws, or any crime or offense involving fraud or breach of trust. The termination is effective immediately upon written notice from Eos Worldwide.
This provision protects Eos Worldwide's brand and reputation. Any crime that could adversely affect the franchisee's, Eos Worldwide's, or the franchise system's reputation can trigger immediate termination. This clause underscores the importance of maintaining ethical and legal compliance as an Eos Worldwide franchisee, as any serious legal transgression could result in the immediate loss of the franchise.