What section of the Eos Worldwide franchise agreement outlines Eos Worldwide's rights upon default?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
17.4 Cross Defaults, Non-Exclusive Remedies, Etc.
Any default by you under this Agreement may be regarded as a default under any other agreement between us (or any affiliate of ours) and you. Any default by you under any other agreement between us (or any of our affiliates) and you (or any person/company affiliated with you), and any default by you under any obligation to us (or any of our affiliates) may be regarded as a default under this Agreement. Any default by you (or any person/company affiliated with you) under any loan agreement, security agreement, lease, supply or service agreement or otherwise and that was signed in connection with the operation of your EOS Franchise, whether with us, any of our affiliates and/or any third party which is not cured by the time period specified in such agreement may be regarded as a default under this Agreement and/or any other agreement between us (or any of our affiliates) and you (or any of your affiliates). In each of the foregoing cases, we (and any of our affiliates) will have all remedies allowed at law, including termination of your rights (and/or those of any person/company affiliated with you) and our (and/or our affiliates') obligations. No right or remedy which we may have (including termination) is exclusive of any other right or remedy provided under law or equity and we may pursue any rights and/or remedies available.
17.5 Rights Upon Default.
- (a) If you breach or default any provision of this Agreement, we may (but have no obligation to) take any action to cure the default on your behalf, without any liability to you.
You shall reimburse us for our costs and expenses (including the allocation of any internal costs) for such action, plus up to 10% of such costs and expenses as an administrative fee.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Section 17.5, titled "Rights Upon Default," details the actions Eos Worldwide may take if a franchisee breaches or defaults on any provision of the franchise agreement. Eos Worldwide has the option, but not the obligation, to take action to correct the default on the franchisee's behalf without incurring any liability.
In such instances, the franchisee is responsible for reimbursing Eos Worldwide for all associated costs and expenses, including internal cost allocations, plus an administrative fee of up to 10% of these costs and expenses. This means that if Eos Worldwide chooses to step in and rectify a franchisee's default, the franchisee will bear the financial burden of that intervention, including a surcharge.
Additionally, Section 17.4, "Cross Defaults, Non-Exclusive Remedies, Etc.", states that a default under the Eos Worldwide agreement can be considered a default under any other agreement between the franchisee and Eos Worldwide or its affiliates. Similarly, a default under any other agreement with Eos Worldwide or its affiliates, or any obligation to them, can be considered a default under the franchise agreement. Furthermore, a default under any agreement related to the operation of the Eos Worldwide franchise, such as a loan, lease, or supply agreement, may also be regarded as a default under the franchise agreement if not cured within the specified time frame. In any of these default scenarios, Eos Worldwide and its affiliates have all legal remedies available, including termination of rights and obligations.