What items in the Eos Worldwide FDD discuss the franchisee's insurance obligations?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
te to the Brand Development Fund in our sole discretion. See Item 11 for more information about advertising.
Insurance Coverage: You also must obtain, before beginning any operations under the Franchise Agreement, and maintain in full force and effect at all times during the term of the Franchise Agreement, at your own expense, the insurance described in the Franchise Agreement and in our Operations Manual. Our current minimum insurance requirements for the United States as of the Issuance Date are: Commercial General Liability insurance and Professional (Errors & Omissions) Liability insurance with no limits no less than $1,000,000 for each occurrence and in the aggregate. Exhibit I to this Disclosure Document provides additional details about our required minimum levels of insurance. Under our Franchise Agreement, we may change these insurance requirements, upon reasonable notice to you, to conform to reasonable local business practices or for other relevant changes in circumstances or for other commercial reasonable business reasons we deem appropriate. Our insurance coverage requirements are only minimum requirements; franchisees should consult with their insurance agents, brokers, legal counsel and/or other insurance advisors to discuss insurance needs on an ongoing basis.
Client Satisfaction and Other Programs: Subject to compliance with applicable law, you must institute and honor all EOS network satisfaction, loyalty and promotional programs that we require on the terms associated with such network programs, as specified in the Operations Manual, and verify your compliance with all such programs in writing at our request. It is especially critical for the goodwill and reputation of EOS that all Clients agree the Services received provide value to their businesses. Therefore, we require all of our franchisees adhere to our Client satisfaction program ("Client Satisfaction Program"). The Client Satisfaction Program requires that franchisees not charge any fee for any session if the Client
concludes the session did not provide sufficient business value and sets additional parameters for providing the Services to Clients. The Client Satisfaction Program (including the additional components and terms) is more fully described in the Operations Manual. We further require that you send an annual survey to your Clients to evaluate your performance. We may modify, change, eliminate or amend the terms of the Client Satisfaction Program or such other network programs on thirty (30) days' notice to you. We also reserve the right to contact all Clients directly for the purposes of determining their satisfaction with EOS.
Change of Suppliers, Products or Services
We may require that you obtain our prior written approval if you wish to purchase any items we have not previously approved, or you wish to purchase from a supplier that we have not previously approved. We may require that certain items be sourced exclusively from us, our affiliates, or our Approved Suppliers or other designated sources, including a single supplier or a limited number of suppliers for certain products, to achieve uniformity or better pricing, simplify inventory and purchasing, or for other legitimate business reasons. We do not promise to evaluate or approve alternate products or suppliers on your request and we may decline to do so.
If we elect to evaluate a product or supplier at your request, you must provide us with adequate information and samples to evaluate the proposed product or supplier. We currently do not charge an evaluation or testing fee. If we agree to evaluate a proposed product or supplier, we will provide you with written notification of the approval or disapproval of the product or supplier within sixty (60) days from the date we receive notice and all information and samples necessary to process your request. We may revoke approval of any supplier upon written notice to you for any reason in our sole discretion.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 31–32)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, Item 8 and Item 23 outline the franchisee's insurance obligations. Item 8 specifies that franchisees must obtain and maintain insurance coverage, including Commercial General Liability and Professional Liability insurance, with minimum limits of $1,000,000 per occurrence and in the aggregate. Exhibit I provides further details on the minimum insurance levels required. Eos Worldwide retains the right to modify these insurance requirements with reasonable notice.
Item 23 reinforces the franchisee's responsibility to comply with insurance requirements and confirm policy compliance with their insurance providers. It also states that Eos Worldwide may change or increase insurance requirements with reasonable notice to conform to local business practices or other relevant changes. Franchisees must ensure their insurance policies require the insurer to notify Eos Worldwide of any cancellations or expirations, providing at least 30 days' notice before such events.
The insurance coverage must be primary and not allow for contribution from Eos Worldwide's insurance. Additionally, the insurance policies must name Eos Worldwide and its affiliates as additional insureds, covering ongoing and completed operations, including negligent acts or omissions. The franchisee's obligation to maintain insurance is not limited by any insurance Eos Worldwide may have, nor does it relieve the franchisee of liability under indemnification provisions. Franchisees must provide annual evidence of insurance compliance.
It is crucial for prospective Eos Worldwide franchisees to carefully review both Item 8 and Item 23, along with Exhibit I, to fully understand their insurance obligations. They should also consult with insurance professionals to ensure they obtain adequate coverage that meets Eos Worldwide's requirements and protects their business from potential liabilities. Understanding these requirements is essential for maintaining compliance and mitigating risks associated with operating an Eos Worldwide franchise.