What outstanding payments must be settled before transferring an Eos Worldwide franchise?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any expiration or termination of this Agreement for any reason, you must, at your cost and expense:
(f) immediately pay us all unpaid fees and pay us, our affiliates, and our approved and designated suppliers and vendors that relates to the operation of the EOS Franchise, all other monies owed thereto;
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must pay all unpaid fees to Eos Worldwide. Additionally, the franchisee is responsible for paying any outstanding monies owed to Eos Worldwide's affiliates, approved suppliers, and vendors related to the operation of the franchise.
This requirement ensures that Eos Worldwide and its associated parties receive all due compensation before the franchisee exits the system. It is a standard practice in franchising to settle all outstanding financial obligations to maintain the integrity of the franchise system and its relationships with suppliers and vendors.
Prospective franchisees should be aware of this obligation, as it could represent a significant financial burden at the time of transfer, termination, or expiration. It is advisable to maintain accurate records of all payments and obligations throughout the franchise term to avoid disputes during the transfer process.