What is the maximum amount Eos Worldwide can charge for insurance reimbursement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to comply with our minimum insurance requirements, we have the right to obtain and maintain the requisite insurance coverage on your behalf and at your sole expense.
You must pay us the premium cost of any insurance we obtain on your behalf plus an administrative fee of up to twenty percent (20%) of the premium cost for obtaining insurance on your behalf.
We have the right to increase, or otherwise modify the minimum insurance requirements upon thirty (30) days' prior written notice to you and you must comply with any modification within the time specified in the notice.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the minimum required insurance coverage, Eos Worldwide has the right to obtain the necessary insurance on the franchisee's behalf, at the franchisee's expense.
The franchisee is responsible for paying the premium cost of the insurance obtained by Eos Worldwide. In addition to the premium cost, Eos Worldwide may charge an administrative fee. This administrative fee can be up to twenty percent (20%) of the insurance premium cost.
This means that if Eos Worldwide secures insurance for a franchisee due to non-compliance, the franchisee will have to pay not only the full insurance premium but also an additional fee, which could be a significant expense. Franchisees should ensure they meet all insurance requirements to avoid these additional costs. Eos Worldwide also retains the right to modify the minimum insurance requirements with thirty days' written notice, requiring franchisees to adapt to these changes promptly.