Is Eos Worldwide required to form a Brand Development Fund?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
ess. We may also establish or otherwise participate in cooperative or special marketing programs. Cooperative advertising or other special marketing programs may include select paid media or other advertising as a flat fee or minimum percentage of revenue. These cooperative or special marketing programs may vary in duration, apply on a local, regional, national or international basis, or involve clusters or groups of Franchised Businesses utilizing services on a shared basis. Examples include sales and marketing programs and customer satisfaction programs. Any such programs may be optional for franchisees or we may require participation.
11.4 Brand Development Fund.
(a) We may form a Brand Development Fund to promote EOS, the EOS Franchise System and its Services and Products. The terms of this Section 11.4 are forward thinking to the extent any such Brand Fund may be formed in the future; provided, however, you would be required to comply with applicable terms and conditions for the Brand Fund as we may establish and update from time to time. The Brand Fund will be used for national, international and/or regional advertising, publicity and promotion relating to EOS and the EOS Franchise System. We will have the right to determine the manner in which the contributions to the Brand Fund are spent, and we may use any form of media we determine is appropriate to conduct advertising and may utilize an in-house advertising department or outside agencies. Some portion of the Brand Fund may be used for creative concept production, website development, marketing surveys, test marketing and related purposes. We will have the right to direct all advertising activities with sole discretion over creative concepts, materials and media used, as well as their placement and allocation, and the right to determine, in our sole discretion, the composition of all geographic and market areas for the implementation of any such advertising and promotional activities.
(b) The Brand Fund will be operated to maximize general public recognition of the Marks and patronage of EOS Worldwide businesses and therefore, we have no obligation to ensure that expenditures of the Brand Fund in or affecting any geographic area are proportionate or equivalent to payments of the Brand Fund contributions by franchisees operating in that geographic area, or that any franchisee's business will benefit directly from any uses or proportionately with any other franchisees.
(c) Brand Fund contributions paid will be kept separate and distinct and will be accounted for separately from our other funds.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, Eos Worldwide is not required to form a Brand Development Fund. However, Eos Worldwide retains the option to establish one in the future to promote the EOS franchise system.
If Eos Worldwide establishes a Brand Development Fund, franchisees will be obligated to contribute to it. The amount and manner of payment will be determined by Eos Worldwide. If the contribution is a fixed fee, Eos Worldwide will limit increases to no more than once per calendar year and to a maximum of $100 per month during the franchise term. These contributions are generally non-refundable, except under specific circumstances outlined in the FDD. Even if the Brand Fund is terminated, Eos Worldwide reserves the right to reinstate it, at which point franchisees will again be required to contribute.
The Brand Fund will be used for advertising, publicity, and promotion of the EOS franchise system at the national, international, or regional level. Eos Worldwide has the sole discretion to decide how the Brand Fund contributions are spent, including the types of media used and the allocation of funds across different geographic and market areas. While the aim is to maximize general public recognition of the EOS brand, Eos Worldwide is not obligated to ensure that expenditures in any specific area are proportionate to the contributions made by franchisees in that area.
Brand Fund contributions will be kept separate from Eos Worldwide's other funds and will not be used for general operating expenses, except for costs associated with administering the fund and developing advertising materials. Eos Worldwide may reimburse itself from the Brand Fund for the costs of these activities, including legal, auditing, accounting fees, and salaries of in-house advertising personnel. Any unspent funds will be carried over to the following year, and Eos Worldwide will provide franchisees with an annual, unaudited statement of funds collected and costs incurred, upon written request.