On what page of the Eos Worldwide franchise agreement are the restrictive covenants detailed?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this Agreement, the term "competing business" shall mean any business that, directly or indirectly, anywhere in the world (i) owns, operates, or otherwise carries on a non-EOS business operating system, (ii) provides training materials, resources, or support for any non-EOS business operating system, (iii) provides outsourced entrepreneurial training, coaching, or facilitation type services or products similar to those provided by EOS or any EOS franchisee or implementer, and/or (iv) otherwise competes with Franchisor, its affiliates or the EOS Franchise System (including through franchising) in general, as such businesses have been conducted, are proposed to be conducted or are being conducted, in each case, during the Term, and the term "competitor" shall mean any person or entity located anywhere in the world which (x) owns, operates, or otherwise engages in a competing business, or (y) provides training materials, resources, or support for any competing business.
16.6 Post-Term Competitive Activities.
In addition to those in-term covenants set forth in Section 16.5, for a period of one (1) year following the expiration or termination of the Term for any reason, unless we otherwise permit in writing, you may not, directly or indirectly (in any capacity, on your own account or as an owner, partner, associate, agent, consultant, licensor, licensee, advisor, employee, independent contractor, member, stockholder (except for the passive ownership of five percent (5%) or less of the equity of a publicly traded company), officer or otherwise of another), and whether alone or in conjunction with any other person or entity, do any of the following:
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Section 16.6, which discusses post-term competitive activities, begins on page 119 of the franchise agreement. This section outlines the restrictions placed on franchisees after the expiration or termination of their franchise agreement.
Specifically, for one year following the end of the franchise term, franchisees are restricted from engaging in any competitive business activities, unless Eos Worldwide provides written permission. These restrictions apply to various roles, including owners, partners, agents, consultants, employees, and stockholders (with a passive ownership exception of 5% or less in a publicly traded company).
The term "competing business" is defined broadly to include any business that operates a non-EOS business operating system, provides training for such systems, offers similar entrepreneurial services, or otherwise competes with Eos Worldwide. This comprehensive definition ensures that former franchisees cannot leverage their experience to directly challenge Eos Worldwide's market position after their franchise agreement concludes.