Can Eos Worldwide use the Brand Fund to cover general operating expenses?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Brand Fund contributions paid will be kept separate and distinct and will be accounted for separately from our other funds. These funds will not be used to defray any of our general operating expenses, except as described in the paragraph above, and no amount of the Brand Fund will be spent for advertising that is principally a solicitation for the sale of franchises, although we will retain the right to include "Franchises Available" or "Interested in becoming a Professional EOS Implementer" or similar language along with our contact information on Brand Fund advertising.
- (d) We may reimburse ourselves out of the Brand Fund for the total costs (including indirect costs) of developing, producing and distributing any advertising materials and administering the Brand Fund (including without limitation, legal, auditing and accounting fees, salaries of in-house advertising personnel and outside advertising agencies and other expenses incurred in connection with collecting any Brand Fund contributions).
- (e) Any sums paid to the Brand Fund that are not spent in the year they are collected will carry over to the following year. For any fiscal year in which we operate or maintain a Brand Fund to which you contribute, then within one hundred twenty (120) days of the fiscal year-end, we will prepare, and furnish to you upon written request, an annual, unaudited statement of funds collected and costs incurred.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the Brand Fund contributions paid by franchisees are kept separate from Eos Worldwide's other funds. Eos Worldwide is generally prohibited from using the Brand Fund to cover its general operating expenses. However, there is an exception, as described in the FDD.
Eos Worldwide may reimburse itself from the Brand Fund for the total costs of developing, producing, and distributing advertising materials. This reimbursement can also include the costs of administering the Brand Fund. These costs may include legal, auditing, and accounting fees, salaries for in-house advertising personnel, payments to outside advertising agencies, and other expenses related to collecting Brand Fund contributions.
Any Brand Fund sums that are not spent in the year they are collected will be carried over to the following year. For any fiscal year in which Eos Worldwide operates or maintains a Brand Fund to which franchisees contribute, Eos Worldwide will prepare and furnish to franchisees upon written request an annual, unaudited statement of funds collected and costs incurred within 120 days of the fiscal year-end.