What post-termination covenants must an Eos Worldwide franchisee comply with after the franchise agreement is terminated or expires?
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:
- (a) immediately cease to use any of the Confidential Information, the Intellectual Property and the Marks;
- (b) immediately return to us (or destroy upon our request) all of your copies of any materials containing any of the Confidential Information or any materials bearing the Intellectual Property or the Marks and all copies and records of the Lists and Client Data;
- (c) upon our request, cooperate in assigning to us or to a person or entity designated by us any and all vendor agreements or sales or service contracts for the Products or the Services with Clients of your Franchise, which will be automatic at our option as a result of the termination or expiration;
- (d) immediately cease all use of our Marks and Intellectual Property including any of our marketing materials and brochures and stop holding yourself out to the public as associated with us in any way including the removal of all trade dress;
- (e) immediately terminate your access to our Computer Systems, any Required Technology, any E-Commerce activities we designate, and any other applicable EOS systems to which you had access as a franchisee, and immediately remove any Franchise related proprietary software from your computer(s);
- (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; and
- (g) comply with the post-termination covenants set forth in Section 16 hereof and elsewhere in this Agreement, all of which will survive the transfer, termination or expiration of this Agreement and cease any and all contact with Clients, suppliers, vendors, employees or our agents without our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, there are several obligations a franchisee must adhere to upon termination or expiration of the franchise agreement. These obligations are designed to protect Eos Worldwide's confidential information, intellectual property, and business interests.
Specifically, the franchisee must immediately stop using any confidential information, intellectual property, and the Eos Worldwide marks. All materials containing confidential information or bearing the intellectual property and marks, including copies and records of client lists and data, must be returned or destroyed at Eos Worldwide's request. The franchisee must also cease using Eos Worldwide's marketing materials and remove any association with Eos Worldwide from their public image, including trade dress. Access to Eos Worldwide's computer systems, required technology, e-commerce activities, and proprietary software must be terminated immediately.
Furthermore, the franchisee is obligated to pay all unpaid fees and monies owed to Eos Worldwide, its affiliates, and approved suppliers and vendors related to the operation of the franchise. Compliance with post-termination covenants outlined in the agreement is required, and the franchisee must cease all contact with clients, suppliers, vendors, employees, or Eos Worldwide's agents without prior written consent. At Eos Worldwide's request, the franchisee must cooperate in assigning vendor agreements or sales/service contracts with clients to Eos Worldwide or its designee, which becomes automatic upon termination or expiration.
These post-termination covenants are typical in franchise agreements to ensure a clean break and prevent unfair competition. Franchisees should carefully review these obligations to understand their responsibilities upon exiting the Eos Worldwide system, whether through termination or expiration of the franchise term.