What is the term of the License Agreement between Eos OpCo and Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to the use, license and sublicense the Marks as well applicable copyrights, patents, know-how and trade secrets owned and developed by EOS OpCo (including any intellectual property developed by us, the "Intellectual Property"), under a license agreement between us and EOS OpCo (the "License Agreement"). On February 15, 2021, EOS OpCo licensed to us a worldwide nonexclusive right to use, and sublicense the use of, the Marks, Intellectual Property and System in connection with the offer, sale and operation of EOS Worldwide businesses. The License Agreement is for a term of 99 years unless EOS OpCo or we terminate the license. However, termination of the license agreement will not affect existing Franchise Agreements. We will sub-license to you the right to use the Marks to operate your Franchised Business upon the terms of your Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 47–51)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the License Agreement between EOS OpCo and Eos Worldwide, dated February 15, 2021, has a term of 99 years. This agreement grants Eos Worldwide a worldwide nonexclusive right to use and sublicense the Marks, Intellectual Property, and System related to EOS Worldwide businesses.
This 99-year term is a substantial period, indicating a long-term commitment between EOS OpCo and Eos Worldwide. However, the license can be terminated by either EOS OpCo or Eos Worldwide, which introduces a potential risk factor for franchisees. Despite the possibility of termination, the FDD states that the termination of the license agreement will not affect existing Franchise Agreements, providing some security for franchisees.
For a prospective franchisee, this means that Eos Worldwide has secured the rights to use its trademarks and intellectual property for a considerable time. However, it is important to understand the conditions under which the License Agreement could be terminated and how that might indirectly affect the franchise agreement, despite the assurance that existing agreements will not be directly affected. It would be prudent for potential franchisees to seek clarification on the specific termination clauses and their implications during their due diligence process.