Are there any claims excluded from the general release required by Eos Worldwide?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
red a waiver of any right conferred upon the Franchisee by Article 33 of the New York State General Business Law and the regulations issued thereunder.
In all other respects, the Franchise Agreement will be construed and enforced with its terms.
FOR THE STATE OF NORTH DAKOTA
The North Dakota Securities Commission requires that certain provisions contained in the Franchise Agreement for EOS Worldwide Franchising, LLC be amended to be consistent with North Dakota Law, including the North Dakota Franchise Investment Law, North Dakota Century Code Addendum, Chapter 51-19, Sections 51-19-01 et seq. Such provisions in the Agreement are hereby amended as follows:
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- General Release. Sections 2.3 and 15.5(f) require Franchisee to sign a general release as a condition of renewal or transfer of the franchise and Section 17.1 requires Franchisee to sign a general release as a condition to exercising its right to terminate the Franchise Agreement; such release shall exclude claims arising under the North Dakota Franchise Investment Law.
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- Covenant Not to Compete. Covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable in the State of North Dakota except in limited instances as provided by law.
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- General Release. Any provision in the Franchise Agreement which requires the Franchisee to sign a general release upon renewal of the Franchise Agreement is hereby deleted from any Franchise Agreement issued in the State of North Dakota.
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- Waiver of Damages. Any provision in the Franchise Agreement which requires the Franchisee to consent to a waiver of exemplary and punitive damages is hereby deleted from any Franchise Agreement issued in the State of North Dakota.
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- Limitations of Claims. Any provision in the Franchise Agreement which requires the Franchisee to consent to a limitation of claims within one year is hereby amended to read the statute of limitations under North Dakota Law will apply in any Franchise Agreement issued in the State of North Dakota.
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- Governing Law; Jurisdiction and Venue. The laws of the State of North Dakota supersede any provisions of the Franchise Agreement, the other agreements or Delaware law if such provisions are in conflict with North Dakota law. Any provision in the Franchise Agreement which designates jurisdiction or venue, or requires the Franchisee to agree to jurisdiction or venue, in a forum outside of North Dakota, is deleted from any Franchise Agreement issued in the State of North Dakota.
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- Waiver of Jury Trial. Section 20.12 of the Franchise Agreement is hereby deleted in its entirety and replaced with "[Intentionally omitted.]"
In all other respects, the Franchise Agreement will be construed and enforced with its terms.
FOR THE STATE OF OHIO
The Ohio Business Opportunity Plan Law requires that certain provisions contained in the Franchise Agreement for EOS Worldwide Franchising, LLC be amended to be consistent with Ohio Law. Such provisions in the Agreement are hereby amended as follows:
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- Governing Law. In the event of a conflict of laws, Ohio law shall prevail.
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- Jurisdiction and Venue. Any action may be brought in the appropriate state or federal court in Ohio.
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- Limitations of Claims. The statute of limitations under Ohio Law shall apply.
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- Revocation Period.
Ohio Notice of Cancellation (FOR OHIO FRANCHISEES ONLY)
(Enter date of transaction)
You may cancel this transaction, without penalty or obligation, within five business days from the above date. If you cancel, any payments made by you under the agreement, and any negotiable instrument executed by you will be returned within ten business days following the seller's receipt of your cancellation notice, and any security interest arising out of the transaction will be cancelled. If you cancel, you must make available to the seller at your business address all goods delivered to you under this agreement; or you may if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk. If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of them without further obligation. If you fail to make the goods available to the seller, or if you agree to return them to the seller and fail to do so, then you remain liable for the performance of all obligations under this
agreement.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the franchise agreement requires franchisees to sign a general release under certain conditions, such as renewal, transfer, or termination of the agreement. However, several states have specific amendments to this requirement to protect franchisees' rights under their local franchise laws. These amendments ensure that the general release does not force franchisees to waive certain legal claims.
For franchisees in North Dakota, the general release shall exclude claims arising under the North Dakota Franchise Investment Law. Similarly, in New York, the release excludes claims arising under the New York State General Business Law and its regulations. In Indiana, the release excludes claims arising under the Indiana Deceptive Franchise Practices Law or the Indiana Franchise Disclosure Law. Maryland excludes claims arising under the Maryland Franchise Registration and Disclosure Law. Illinois does not allow a general release to waive compliance with the Illinois Franchise Disclosure Act. Rhode Island excludes claims arising under The Rhode Island Franchise Investment Act. Finally, Hawaii excludes claims arising under the Hawaii Franchise Investment Law.
These state-specific amendments to the general release are crucial for prospective Eos Worldwide franchisees. They ensure that franchisees do not unknowingly waive their rights to pursue legal claims under their state's franchise laws. This protection is particularly important in the context of franchise relationships, where power imbalances may exist between the franchisor and franchisee. Franchisees should carefully review the specific amendments applicable to their state and consult with legal counsel to fully understand their rights and obligations under the franchise agreement.