Is Eos Worldwide obligated to form a Brand Development Fund?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) We may form a Brand Development Fund to promote EOS, the EOS Franchise System and its Services and Products. The terms of this Section 11.4 are forward thinking to the extent any such Brand Fund may be formed in the future; provided, however, you would be required to comply with applicable terms and conditions for the Brand Fund as we may establish and update from time to time. The Brand Fund will be used for national, international and/or regional advertising, publicity and promotion relating to EOS and the EOS Franchise System. We will have the right to determine the manner in which the contributions to the Brand Fund are spent, and we may use any form of media we determine is appropriate to conduct advertising and may utilize an in-house advertising department or outside agencies. Some portion of the Brand Fund may be used for creative concept production, website development, marketing surveys, test marketing and related purposes. We will have the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation, and the right to determine, in our sole discretion, the composition of all geographic and market areas for the implementation of any such advertising and promotional activities.
- (b) The Brand Fund will be operated to maximize general public recognition of the Marks and patronage of EOS Worldwide businesses and therefore, we have no obligation to ensure that expenditures of the Brand Fund in or affecting any geographic area are proportionate or equivalent to payments of the Brand Fund contributions by franchisees operating in that geographic area, or that any franchisee's business will benefit directly from any uses or proportionately with any other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide is not obligated to form a Brand Development Fund. The FDD states that Eos Worldwide "may" form a Brand Development Fund to promote the EOS franchise system. This indicates that establishing a Brand Development Fund is optional for Eos Worldwide. However, if Eos Worldwide does establish a Brand Development Fund, franchisees would be required to comply with the terms and conditions established and updated by Eos Worldwide from time to time.
The Brand Development Fund, if formed, would be used for national, international, and/or regional advertising, publicity, and promotion related to EOS and the EOS Franchise System. Eos Worldwide would have the right to determine how the Brand Fund contributions are spent and may use any form of media deemed appropriate, including an in-house advertising department or outside agencies. A portion of the Brand Fund may be used for creative concept production, website development, marketing surveys, test marketing, and related purposes.
Eos Worldwide retains sole discretion over all advertising activities, including creative concepts, materials, media used, placement, and allocation. Eos Worldwide also has the right to determine the composition of all geographic and market areas for implementing advertising and promotional activities. Eos Worldwide has no obligation to ensure that expenditures of the Brand Fund in or affecting any geographic area are proportionate or equivalent to payments of Brand Fund contributions by franchisees operating in that geographic area, or that any franchisee's business will benefit directly from any uses or proportionately with any other franchisees.