What two fees must be paid before the Eos Worldwide Franchise Agreement is effective?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
If EOS Worldwide Franchising, LLC offers you a franchise, it must provide this Disclosure Document to you fourteen (14) calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
New York requires that we give you this Disclosure Document at the earlier of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan requires that we give you this Disclosure Document at least ten (10) business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
If EOS Worldwide Franchising, LLC does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the state agency listed on Exhibit C.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
Based on the 2025 Eos Worldwide Franchise Disclosure Document, it is mandatory for Eos Worldwide to provide the disclosure document to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make any payment related to the franchise. This requirement is in place to ensure that potential franchisees have ample time to review the FDD and make informed decisions. New York and Michigan have their own specific timelines for providing the FDD, which are the earlier of the first personal meeting or ten business days before signing any agreement or making any payment.
This regulation is designed to protect prospective franchisees by giving them sufficient time to assess the franchise opportunity. It also allows them to seek legal and financial advice before committing to the franchise. The disclosure document contains important information about the franchise, including the franchisor's background, financial performance, fees, and obligations.
If Eos Worldwide fails to deliver the disclosure document within the stipulated time frame or if the document contains false, misleading, or omits material information, it could be a violation of federal and state laws. In such cases, the prospective franchisee has the right to report the violation to the Federal Trade Commission and the relevant state agency.
While the excerpt specifies the timing of when the FDD must be delivered before any payment, it does not explicitly state which specific fees must be paid to make the Franchise Agreement effective. To obtain this information, prospective franchisees should carefully review Item 5 (Initial Fees) and Item 6 (Other Fees) of the FDD and consult with Eos Worldwide directly to clarify all required payments and their due dates.