Under what conditions can an Eos Worldwide franchisee terminate the franchise agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section Franchise Agreement | in Summary |
|---|---|---|
| a. | 2.2 | Five (5) year term ending on the last day of the calendar month |
| Length of the franchise term | following your five-year anniversary. | |
| b. Renewal or extension of the term | 2.3 | The franchise may be renewed for up to two 3-year year terms if you are in good standing and we are still in the business of offering and selling new EOS Worldwide franchises. |
| c. Requirements for franchisee to renew or extend | 2.3 | Requirements include: (i) you provide us the prior notice required in the Franchise Agreement; (ii) you complete, to our satisfaction all maintenance and upgrading necessary we require; (iii) you are in good standing; (iv); you satisfy all monetary obligations you owe us, our affiliates, and our Approved Suppliers; (v) you execute our then current form of Franchise Agreement; (vi) you satisfy our then-current requirements for new franchisees and our training requirements; (vii) you and your applicable co-owners sign a general release; and (viii) we are still in the business of offering and selling new EOS franchises. The then-current standard Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. |
| d. Termination by franchisee | 17.1 | You may terminate at any time with 60 days' prior written notice. You may also terminate prior to registering for Boot Camp with at least 10 days' prior written notice. To do so, you and your applicable co-owners must execute a full release and you must be in good standing and must pay your monthly fees until your termination date. Except as described above, you are not entitled to any refunds of any fees. Provisions regarding termination by us are subject to state law. |
| e. Termination by franchisor | Not | We may not terminate without cause. |
| without cause | Applicable | |
| f. | 17.2-17.3 | Each of your obligations under the Franchise Agreement is a material |
| Termination by franchisor | and essential obligation, the breach of which may result in | |
| with cause | termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 54–59)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, a franchisee can terminate the franchise agreement under specific conditions. The franchisee has the option to terminate the agreement at any point, provided they give Eos Worldwide 60 days' prior written notice. Additionally, a franchisee can terminate the agreement with at least 10 days' prior written notice before registering for Boot Camp.
However, to terminate the agreement, the franchisee and any co-owners must execute a full release, be in good standing with Eos Worldwide, and continue to pay monthly fees until the termination date. It is important to note that, except for the specific condition of terminating before Boot Camp registration, the franchisee is not entitled to any refunds of fees already paid. The FDD also states that provisions regarding termination by Eos Worldwide are subject to state law.
Upon termination or non-renewal of the franchise agreement, the franchisee has several obligations. They must immediately stop using any of Eos Worldwide's confidential information, intellectual property, and marks. The franchisee is also required to promptly return or destroy, upon request, all copies of materials containing confidential information or materials bearing the intellectual property or marks, including client lists. Additionally, the franchisee must cooperate in assigning vendor agreements or service contracts to Eos Worldwide or its designee, which becomes automatic at Eos Worldwide's option upon termination or expiration.