Under what condition can Eos Worldwide procure insurance on behalf of a franchisee?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Insurance Reimbursement.
If you fail to comply with our minimum insurance requirements, we have the right to obtain and maintain the requisite insurance coverage on your behalf and at your sole expense.
You must pay us the premium cost of any insurance we obtain on your behalf plus an administrative fee of up to twenty percent (20%) of the premium cost for obtaining insurance on your behalf.
We have the right to increase, or otherwise modify the minimum insurance requirements upon thirty (30) days' prior written notice to you and you must comply with any modification within the time specified in the notice.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Eos Worldwide has the right to obtain and maintain insurance coverage on behalf of a franchisee if the franchisee fails to comply with the minimum insurance requirements set by Eos Worldwide. This is done at the franchisee's sole expense.
The franchisee is responsible for paying the premium cost of any insurance Eos Worldwide obtains on their behalf. In addition to the premium cost, Eos Worldwide will charge an administrative fee of up to 20% of the premium cost. This fee covers the expenses Eos Worldwide incurs in obtaining the insurance.
Eos Worldwide retains the right to increase or modify the minimum insurance requirements. They must provide the franchisee with 30 days' prior written notice of any changes. The franchisee is then obligated to comply with these modifications within the timeframe specified in the notice. This ensures that all franchisees maintain adequate insurance coverage as mandated by Eos Worldwide.