If Eos Worldwide treats the agreement as expired, what is the consequence for the franchisee?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
2.4 Extension of Term.
If you do not renew the Term pursuant to the terms of Section 2.3 and continue to accept the benefits of this Agreement beyond the stated Term, then, at our option, this Agreement may be treated as (i) expired as of the last day of the Initial Term or then-current Renewal Term, as applicable, which will result in your operating the Franchise without a license in violation of our rights; or (ii) continued on a month-to-month basis until we provide you with notice of our intent to terminate the month-to-month term. In the latter case, all of your obligations shall remain in full force and effect as if this Agreement had not expired, and all obligations and restrictions imposed upon you upon the expiration of this Agreement shall be deemed to take effect upon the termination of the month-to-month term.
17.6 Obligations Upon Termination/Expiration.
Upon any expiration or termination of this Agreement for any reason, you must, at your cost and expense:
- (a) immediately cease to use any of the Confidential Information, the Intellectual Property and the Marks;
- (b) immediately return to us (or destroy upon our request) all of your copies of any materials containing any of the Confidential Information or any materials bearing the Intellectual Property or the Marks and all copies and records of the Lists and Client Data;
- (c) upon our request, cooperate in assigning to us or to a person or entity designated by us any and all vendor agreements or sales or service contracts for the Products or the Services with Clients of your Franchise, which will be automatic at our option as a result of the termination or expiration;
- (d) immediately cease all use of our Marks and Intellectual Property including any of our marketing materials and brochures and stop holding yourself out to the public as associated with us in any way including the removal of all trade dress;
- (e) immediately terminate your access to our Computer Systems, any Required Technology, any E-Commerce activities we designate, and any other applicable EOS systems to which you had access as a franchisee, and immediately remove any Franchise related proprietary software from your computer(s);
- (f) immediately pay us all unpaid fees and pay us, our affiliates, and our approved and designated suppliers and vendors that relates to the operation of the EOS Franchise, all other monies owed thereto; and
- (g) comply with the post-termination covenants set forth in Section 16 hereof and elsewhere in this Agreement, all of which will survive the transfer, termination or expiration of this Agreement and cease any and all contact with Clients, suppliers, vendors, employees or our agents without our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 FDD, if a franchisee with Eos Worldwide does not renew their term as per the requirements in Section 2.3, Eos Worldwide has the option to treat the agreement as expired. If Eos Worldwide elects to treat the agreement as expired, the franchisee will be considered to be operating the franchise without a license, which is a violation of Eos Worldwide's rights.
Upon expiration of the franchise agreement, the franchisee must immediately cease using any confidential information, intellectual property, and marks associated with Eos Worldwide. The franchisee is also required to return or destroy all copies of materials containing confidential information or bearing the intellectual property and marks, including lists and client data. Additionally, Eos Worldwide can request the assignment of vendor agreements or sales/service contracts with clients of the franchise to Eos Worldwide or a designated entity.
Furthermore, the franchisee must stop using Eos Worldwide's marketing materials and remove any association with Eos Worldwide from their public image, including trade dress. Access to Eos Worldwide's computer systems, required technology, e-commerce activities, and proprietary software must be terminated. All unpaid fees and monies owed to Eos Worldwide, its affiliates, and approved suppliers must be paid. The franchisee must also comply with post-termination covenants, which include ceasing contact with clients, suppliers, vendors, employees, or Eos Worldwide's agents without prior written consent. These obligations survive the expiration of the agreement.