Under the Eos Worldwide Franchise Agreement, what section pertains to making a Transfer?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
15. TRANSFERS.
15.1 By Us.
This Agreement is fully transferable by us and will inure to the benefit of any transferee or other legal successor to our interests. We may assign our interest in this Agreement, directly or indirectly, by merger, public or private offering, assignment, pledge or other means, without your approval or consent; provided, however, that with respect to any assignment resulting in the subsequent performance by the assignee of the functions of Franchisor, the assignee shall assume the obligations of Franchisor under this Agreement and the assigning Franchisor shall thereafter have no liability for the performance of any obligations contained in this Agreement subject to applicable law. You expressly and specifically waive any claims, demands or damages arising from or related to the loss of any Marks (or any variation thereof) and/or the loss of association with or identification of EOS Worldwide Franchising, LLC or its affiliates. Nothing contained in this Agreement will require Franchisor or its affiliates to continue to offer franchises, whether in the event that Franchisor exercises its rights to assign or otherwise transfer its rights in this Agreement or otherwise.
15.2 By You.
The rights and duties along with the Franchise granted in this Agreement are personal to you, and we have granted the Franchise to you in reliance upon our perceptions of your individual character, skill, aptitude, business ability and financial capacity. Accordingly, you may make no Transfer (as defined below) without our prior written approval, such approval not to be unreasonably withheld. Any purported Transfer without such approval will be null and void and constitute a material breach of this Agreement and will entitle us to terminate this Agreement.
15.3 Definition of Transfer.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, Section 15 of the Franchise Agreement pertains to making a transfer. This section outlines the conditions under which Eos Worldwide or the franchisee can transfer the agreement. It specifies that Eos Worldwide can fully transfer the agreement to another party without the franchisee's approval. However, if the transfer results in a new franchisor, that entity must assume the obligations of the original franchisor.
For the franchisee, the rights and duties within the Franchise Agreement are personal, granted based on the franchisor's assessment of the franchisee's character, skills, business acumen, and financial capacity. Consequently, the franchisee cannot make any transfer without prior written approval from Eos Worldwide, which will not be unreasonably withheld. Transferring without this approval constitutes a breach of the agreement, potentially leading to termination.
The Franchise Agreement defines what constitutes a "Transfer." This definition is crucial because it determines when the franchisee needs to seek approval from Eos Worldwide. The agreement also outlines conditions for permitted transfers, such as those to family members or existing business entity members, which may have different requirements, such as waiving the transfer fee. Understanding Section 15 is essential for any prospective Eos Worldwide franchisee, as it dictates the process and restrictions related to transferring the franchise.