Under what conditions is an Eos Worldwide franchisee required to sign a general release?

According to the 2025 FDD, the standard Eos Worldwide franchise agreement requires franchisees in certain states to sign a general release under specific conditions, but these requirements are often modified by state law. Generally, these releases are required as a condition of renewal or transfer of the franchise, or when exercising the right to terminate the Franchise Agreement. However, many states have laws that modify or eliminate these requirements to protect franchisees' rights.

For instance, in North Dakota and Illinois, the requirement to sign a general release upon renewal of the Franchise Agreement is deleted or intended to waive compliance with the Illinois Franchise Disclosure Act. Similarly, in states like Hawaii, Rhode Island, Indiana, Maryland, and Minnesota, any general release required must exclude claims arising under their respective franchise investment laws. This means that while Eos Worldwide's standard agreement includes a general release requirement, the specific terms and enforceability of this requirement vary significantly depending on the franchisee's location.

Prospective Eos Worldwide franchisees should be aware of these state-specific modifications and consult with legal counsel to understand their rights and obligations fully. The FDD clearly states that the laws of the franchisee's state may supersede the general terms of the Franchise Agreement, particularly concerning general releases. Therefore, franchisees should pay close attention to the addenda for their specific state to ensure they are not waiving any rights protected by state law. Understanding these nuances is crucial for making an informed decision about investing in an Eos Worldwide franchise.