Does Eos Worldwide reserve the right to audit a franchisee's use of AI solutions?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that in order to protect the goodwill of the EOS Franchise System and our brand, the use of artificial intelligence ("AI") in the Franchised Business must be conducted in a safe, thoughtful, and ethical manner. Accordingly, you shall comply with all applicable Franchise System Standards and guidelines set forth in the Operations Manual, as updated from time to time. You are strictly prohibited from using AI solutions to: (i) access, use, or transmit Confidential Information or Intellectual Property without our prior written authorization; (ii) collect, use, disclose, or otherwise utilize Client Data in any way not expressly permitted under this Agreement and applicable data privacy laws; (iii) engage in any activity that could harm the EOS Franchise System or our brand reputation or expose it or us to legal or regulatory risk; and (iv) develop or deploy AI solutions that violate applicable laws or regulations, including those pertaining to discrimination, data privacy, and consumer protection. We reserve the right to periodically audit your use of AI solutions to ensure compliance with this Agreement and our Franchise System Standards. Upon request, you agree to provide us with regular reports related to the performance and impact of your AI solutions.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide retains the right to periodically audit a franchisee's use of AI solutions. This audit is to ensure that the franchisee complies with the franchise agreement and the Eos Worldwide Franchise System Standards.
The FDD specifies that franchisees must use AI in a safe, thoughtful, and ethical manner to protect the goodwill of the Eos Worldwide brand. Franchisees are prohibited from using AI solutions to access or transmit confidential information or intellectual property without prior written authorization, collect or use client data in ways not permitted by the agreement or data privacy laws, engage in activities that could harm the Eos Worldwide brand, or develop AI solutions that violate laws and regulations.
Furthermore, Eos Worldwide can request regular reports from franchisees regarding the performance and impact of their AI solutions. This allows Eos Worldwide to monitor how franchisees are using AI and whether it aligns with the brand's standards and legal requirements. This is not uncommon, as franchisors typically maintain the right to audit various aspects of a franchisee's business to ensure compliance and protect the brand's reputation.