Which sections of the Eos Worldwide Franchise Agreement cover the franchisee's obligations for on-going product/service purchases?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 1: THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES]
We began offering EOS Worldwide franchises as of February 16, 2021. We also operate our online store (the "EOS Online Store"), which offers and sells EOS branded books, educational materials and other related EOS products to franchisees, Clients (as defined below), and the public. You are required to purchase certain educational and instructive materials used with your Client sessions from us through the EOS Online Store. Other materials that you may need to operate your EOS Worldwide franchise, including EOS branded books, may be purchased wherever available, subject to the terms and conditions of the Franchise Agreement.
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
We do derive revenue from your required purchases. In 2024, EOS Worldwide, as the franchisor, derived revenues from sales of required purchases by franchisees of $3,309,031, which accounted for approximately 13.90% franchisors total revenues of $23,813,492. This amount does not include revenue from providing required training for new franchisees. While neither we nor our affiliates currently derive any revenues from purchases or leases we require; we and our affiliates sell certain other supplies, products and services to franchisees from time to time that are not required, and therefore derive revenue from those sales. In the future, we and our affiliates may receive other types of revenues, material benefits, and other consideration as described above from your purchase of supplies, products and services we require to operate your Franchised Business, including, through books that we may author.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 31–32)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Item 8, titled "Restrictions on Sources of Products and Services," and Item 1, titled "The Franchisor, and any Parents, Predecessors, and Affiliates," outline the franchisee's obligations for on-going product and service purchases. Specifically, franchisees are required to purchase certain educational and instructive materials used in client sessions directly from Eos Worldwide through their online store. While franchisees may source other materials, including Eos Worldwide branded books, from various sources, this is subject to the terms and conditions outlined in the Franchise Agreement.
Eos Worldwide generates revenue from these required purchases made by franchisees. In 2024, the revenue from these sales totaled $3,309,031, representing approximately 13.90% of the franchisor's total revenues of $23,813,492. This figure excludes revenue derived from required training for new franchisees. While Eos Worldwide and its affiliates do not currently gain revenue from required purchases or leases beyond the online store, they may sell other non-required supplies, products, and services to franchisees, generating revenue from those sales.
Prospective franchisees should note that Eos Worldwide retains the right to receive incentives, volume rebates, allowances, and other benefits from suppliers and manufacturers, including approved suppliers, based on sales made to franchisees. While there are currently no purchasing or distribution cooperatives in which franchisees must participate, Eos Worldwide reserves the right to mandate participation in the future. Franchisees should carefully review Item 8 and Item 1 of the Franchise Agreement to fully understand their obligations and the potential financial implications of these purchasing requirements.