What does Eos Worldwide require franchisees to do before investing time or money in outside ventures?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
When considering your next steps, please consider these simple rules:
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- Don't damage the EOS brand, use EOS Intellectual Property, or compete with either EOS Worldwide or the EOS Implementer Community
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- Don't use the EOS brand or any EOS brand assets without our express written permission, and
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- Ask us for input before investing any time or money.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 53–54)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, franchisees are expected to seek input from Eos Worldwide before investing time or money in outside ventures. This requirement is part of a broader process where franchisees may need to clear outside ventures with Eos Worldwide, especially if those ventures could potentially create a conflict of interest with the Eos Worldwide brand or the franchisee's Eos Implementer business. This process is referred to as an "Item 16" review.
Eos Worldwide acknowledges that its franchisees are often successful entrepreneurs who may have other business interests. Unlike some franchise systems that demand full-time dedication, Eos Worldwide permits franchisees to engage in outside opportunities. However, these opportunities must not violate the franchise agreement's restrictive covenants or create a conflict of interest.
To ensure compliance, Eos Worldwide has established guidelines in its Operations Manual that define acceptable and unacceptable outside opportunities. If a franchisee is creating, pursuing, or even planning a separate venture alongside their Eos Implementer business, they may be required to submit it for an "Item 16" review. This review involves a series of questions designed to determine whether the outside opportunity could create a conflict of interest. This "Item 16" review is part of the screening process for new franchisees.
In summary, while Eos Worldwide does not mandate full-time operation and allows outside ventures, it requires transparency and approval to protect its brand and prevent conflicts of interest. Franchisees must ask for input before investing time or money in ventures that could potentially impact their Eos Implementer business.