How many defaults on material obligations can an Eos Worldwide franchisee have before the agreement is terminated?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) default, on three (3) or more separate occasions within any term of your Franchise, on any of your material obligations to us or an affiliate, whether or not cured (including failure to adhere to any of our Core Values), and/or other third parties, the Operations Manual or otherwise;
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, an Eos Worldwide franchise agreement can be terminated if the franchisee defaults on three or more separate occasions regarding their material obligations. These defaults can occur at any point during the franchise term.
These obligations include adherence to the brand's core values, as well as obligations to Eos Worldwide, its affiliates, or other third parties. The defaults can stem from the Operations Manual or other agreements. It is important to note that these defaults count towards termination eligibility whether or not they are cured by the franchisee.
This policy highlights the importance of franchisees maintaining consistent compliance with all contractual obligations. Prospective franchisees should carefully review the franchise agreement and operations manual to fully understand their obligations and the potential consequences of repeated defaults.