If Eos Worldwide purchases insurance for a franchisee, what additional fee can they charge?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, franchisees are required to maintain commercial insurance coverage consistent with industry standards for business coaches. If a franchisee fails to obtain or maintain the required insurance coverage, Eos Worldwide has the option to purchase it on behalf of the franchisee.
In such instances where Eos Worldwide procures insurance for the franchisee, the franchisee is obligated to pay Eos Worldwide the premium cost. In addition to the premium cost, Eos Worldwide may also charge an administrative fee.
The administrative fee that Eos Worldwide can charge is up to 20% of the total costs and expenses incurred for purchasing the insurance. This fee is intended to cover the administrative efforts involved in securing the insurance on behalf of the franchisee.