What are the requirements for an Eos Worldwide franchisee to renew their franchise term?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section Franchise Agreement | in Summary |
|---|---|---|
| a. | 2.2 | Five (5) year term ending on the last day of the calendar month |
| Length of the franchise term | following your five-year anniversary. | |
| b. Renewal or extension of the term | 2.3 | The franchise may be renewed for up to two 3-year year terms if you are in good standing and we are still in the business of offering and selling new EOS Worldwide franchises. |
| c. Requirements for franchisee to renew or extend | 2.3 | Requirements include: (i) you provide us the prior notice required in the Franchise Agreement; (ii) you complete, to our satisfaction all maintenance and upgrading necessary we require; (iii) you are in good standing; (iv); you satisfy all monetary obligations you owe us, our affiliates, and our Approved Suppliers; (v) you execute our then current form of Franchise Agreement; (vi) you satisfy our then-current requirements for new franchisees and our training requirements; (vii) you and your applicable co-owners sign a general release; and (viii) we are still in the business of offering and selling new EOS franchises. The then-current standard Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, a franchisee can renew their franchise for up to two additional 3-year terms if they meet certain requirements and Eos Worldwide is still offering new franchises. The initial franchise term is five years, ending on the last day of the calendar month following the franchisee's five-year anniversary.
To renew the franchise, the franchisee must provide the required prior notice as specified in the Franchise Agreement. They must also complete all necessary maintenance and upgrades to Eos Worldwide's satisfaction, be in good standing with the company, and fulfill all monetary obligations owed to Eos Worldwide, its affiliates, and approved suppliers.
Furthermore, the franchisee must execute the then-current form of the Franchise Agreement, which may contain materially different terms and conditions than the original agreement. They must also satisfy Eos Worldwide's then-current requirements for new franchisees, including training requirements, and both the franchisee and any co-owners must sign a general release. Finally, Eos Worldwide must still be in the business of offering and selling new Eos Worldwide franchises at the time of renewal.
Prospective franchisees should carefully consider these renewal conditions, as they may involve significant financial investments for upgrades and adherence to new standards. The requirement to sign the then-current Franchise Agreement is particularly important, as it could introduce less favorable terms compared to the original agreement.