Under what conditions may Eos Worldwide change the insurance requirements for franchisees?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
te to the Brand Development Fund in our sole discretion. See Item 11 for more information about advertising.
Insurance Coverage: You also must obtain, before beginning any operations under the Franchise Agreement, and maintain in full force and effect at all times during the term of the Franchise Agreement, at your own expense, the insurance described in the Franchise Agreement and in our Operations Manual. Our current minimum insurance requirements for the United States as of the Issuance Date are: Commercial General Liability insurance and Professional (Errors & Omissions) Liability insurance with no limits no less than $1,000,000 for each occurrence and in the aggregate. Exhibit I to this Disclosure Document provides additional details about our required minimum levels of insurance. Under our Franchise Agreement, we may change these insurance requirements, upon reasonable notice to you, to conform to reasonable local business practices or for other relevant changes in circumstances or for other commercial reasonable business reasons we deem appropriate. Our insurance coverage requirements are only minimum requirements; franchisees should consult with their insurance
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–31)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, Eos Worldwide has the right to modify the insurance requirements for franchisees under certain conditions. These adjustments can be made to align with reasonable local business practices, to reflect relevant changes in circumstances, or for other commercially reasonable business reasons that Eos Worldwide deems appropriate.
Currently, Eos Worldwide requires franchisees in the United States to maintain Commercial General Liability insurance and Professional (Errors & Omissions) Liability insurance with minimum limits of $1,000,000 per occurrence and in the aggregate. However, Eos Worldwide retains the flexibility to change these minimum insurance requirements.
Prospective franchisees should understand that these insurance requirements are only minimums, and it is advisable to consult with insurance professionals to determine adequate coverage. Eos Worldwide is obligated to provide franchisees with reasonable notice before implementing any changes to the insurance requirements, allowing franchisees time to adjust their policies accordingly.