What section of the Eos Worldwide FDD covers advertising and promotion for Eos Worldwide franchisees?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
discontinue use of any advertising, marketing or promotional plans or materials, whether or not previously approved, on notice from us. Advertising and promotional efforts and programs include, but are in no way limited to, local advertising, national or other advertising, press releases, uses of social media platforms or other public statements, media and other promotional or public relations events, sponsorships, endorsements and online activities (to the extent permissible in this Agreement). You acknowledge that if you enter into any contract or binding arrangement to use any unapproved advertising or otherwise engage in any unauthorized advertising or promotional efforts, you are doing so at your own risk and therefore, in addition to any rights and remedies in law or in equity that we may have pursuant to this Agreement, you may be obligated to pay for advertising or promotional materials or programs which we will not allow to be used for the Franchised Business or the EOS Franchise System.
11.2 Grand Opening Advertising.
There is currently no requirement that you engage in a specific grand opening promotion outside of regular marketing efforts, such as through social media, e-mail marketing, and local networking and business resources. You are not required to spend any amount on grand opening promotions, but we recommend you purchase Traction books (which are available for purchase at the EOS Online Store or from third parties) to use in your marketing and promotional efforts.
11.3 Local Marketing; Special Marketing or Cooperative Programs.
We do not currently require you spend any minimum amount for local marketing, however, you may wish to conduct local marketing and advertising activities and create marketing co-ops with fellow franchisees, including sponsoring local peer groups to publicize your Franchised Business. 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.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Item 23 generally discusses advertising and promotion for franchisees. Specifically, several subsections within Item 23 detail different aspects of advertising and marketing. Section 11.2 addresses grand opening advertising, noting that there isn't a specific requirement for grand opening promotions outside of regular marketing efforts. It recommends purchasing Traction books for marketing and promotional efforts but does not mandate spending any specific amount on grand opening promotions.
Section 11.3 outlines local marketing and special marketing or cooperative programs. While Eos Worldwide doesn't require a minimum spend on local marketing, franchisees may choose to engage in local advertising activities and create marketing co-ops with other franchisees. Eos Worldwide may also establish or participate in cooperative or special marketing programs, which could include paid media or other advertising with fees or a percentage of revenue. Participation in these programs may be optional or required.
Section 11.4 discusses the potential formation of a Brand Development Fund to promote Eos Worldwide and its franchise system. If formed, this fund would be used for national, international, and regional advertising, publicity, and promotion. Eos Worldwide would have the discretion to determine how the Brand Fund contributions are spent, including the use of various media, in-house advertising departments, or outside agencies. The franchisor also retains the right to discontinue the use of any advertising, marketing, or promotional plans or materials, whether or not previously approved.
These sections collectively provide an overview of Eos Worldwide's approach to advertising and promotion, highlighting the flexibility franchisees have in local marketing, the potential for cooperative programs, and the possibility of a Brand Development Fund managed by the franchisor. Prospective franchisees should carefully consider these aspects to understand their responsibilities and opportunities related to marketing their Eos Worldwide franchise.