exception

Under what circumstances is an Eos Worldwide franchisee not required to indemnify the franchisor?

Eos_Worldwide Franchise · 2025 FDD

Answer from 2025 FDD Document

chise Agreement is amended to prohibit unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.

    1. Franchisee Indemnification. The Franchise Agreement is amended to provide that Franchisee shall not be required to indemnify Franchisor for any liability imposed upon Franchisor as a result of Franchisee's reliance upon or use of procedures or products that were required by Franchisor,

Source: Item 22 — CONTRACTS (FDD page 74)

What This Means (2025 FDD)

According to the 2025 Eos Worldwide Franchise Disclosure Document, franchisees in New York and Indiana are not required to indemnify Eos Worldwide under specific circumstances. In both states, the franchisee is not required to indemnify Eos Worldwide for any liability imposed upon Eos Worldwide as a result of the franchisee's reliance upon or use of procedures or products that were required by Eos Worldwide, if such procedures or products were utilized by the franchisee in the manner required by Eos Worldwide.

This means that if Eos Worldwide mandates the use of certain procedures or products, and the franchisee follows those instructions correctly, the franchisee will not be held responsible for covering Eos Worldwide's liabilities that arise from the use of those procedures or products. This amendment to the franchise agreement is specific to franchisees operating in New York and Indiana and is designed to protect franchisees from liability when they are simply following the franchisor's required methods.

This type of protection is not universally offered in franchising, as indemnity clauses often require franchisees to protect the franchisor from various liabilities. The inclusion of this clause in the New York and Indiana agreements suggests a willingness by Eos Worldwide to bear responsibility for the systems and requirements it imposes on its franchisees in those states. Prospective franchisees in these states should carefully note this protection, while those in other states should understand that they may have broader indemnification obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.