For Eos Worldwide, what two fees must be paid before the 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 fourteen calendar days before the franchisee signs a binding agreement or makes any payment to Eos Worldwide or its affiliates related to the franchise sale. This requirement ensures that potential franchisees have adequate time to review the FDD and make informed decisions. New York and Michigan have specific requirements regarding the timing of providing the FDD, mandating it be given at the earlier of the first personal meeting or ten business days before signing any agreement or making any payment.
This mandatory waiting period and disclosure are designed to protect franchisees by allowing them sufficient time to assess the franchise opportunity. The FDD includes important information about the franchise system, including fees, obligations, and financial performance. By providing this information in advance, Eos Worldwide aims to ensure transparency and prevent franchisees from feeling pressured into making hasty decisions.
If Eos Worldwide fails to deliver the Disclosure Document on time, or if the document contains false, misleading, or omits material information, it could constitute a violation of federal and state laws. In such cases, prospective franchisees are advised to report the violation to the Federal Trade Commission and the relevant state agency. This measure provides an additional layer of protection for franchisees and holds Eos Worldwide accountable for the accuracy and completeness of its disclosures.
In summary, while the excerpt highlights the timing and importance of the Disclosure Document, it does not explicitly state which fees must be paid to make the Franchise Agreement effective. A prospective franchisee should carefully review the full FDD, specifically Item 5 (Initial Fees) and Item 6 (Other Fees), and consult with Eos Worldwide to understand all required payments and their due dates.