Does Eos Worldwide have the obligation to undertake the franchisee's obligations upon termination or expiration?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
Alternatively, we may elect in our sole discretion, to undertake the obligations set forth in subsections (a)- (f) above and charge you for our costs and expenses incurred therewith. You hereby appoint us as your duly appointed agent and attorney in fact by way of power of attorney with the absolute right (but not the obligation) to perform the acts specified in this Section at your sole cost and expense. The appointment of us as your agent and attorney in fact by way of power of attorney for the purposes set forth herein is declared and acknowledged to be coupled with an interest and is irrevocable. The grant of power of attorney herein shall include full powers of substitution.
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 undertake the franchisee's obligations upon termination or expiration of the franchise agreement. However, Eos Worldwide has the option to do so.
Specifically, Eos Worldwide may elect, at its sole discretion, to undertake the obligations related to specific requirements and charge the franchisee for the associated costs and expenses. These obligations are not detailed in this section. The franchisee appoints Eos Worldwide as their agent and attorney with the right, but not the obligation, to perform these actions at the franchisee's expense. This appointment is considered irrevocable and includes full powers of substitution.
In addition, upon the expiration or termination of the agreement, the franchisee is responsible for several actions, including ceasing the use of confidential information, intellectual property, and marks, returning or destroying materials containing confidential information, cooperating in assigning vendor agreements or service contracts to Eos Worldwide, ceasing the use of Eos Worldwide's marks and intellectual property, terminating access to computer systems, paying all unpaid fees, and complying with post-termination covenants.
This arrangement provides Eos Worldwide with the flexibility to manage the transition after a franchise agreement ends, while ensuring the franchisee understands their responsibilities regarding confidential information, intellectual property, and outstanding financial obligations.