EOS Worldwide
Business Services
Founded 2021732 locationsEOS Worldwide Franchising, LLC offers a franchise opportunity to operate as an EOS Implementer®, providing entrepreneurial training, leadership, and business development services (Services) and related products (Products) using the Entrepreneurial Operating System (EOS). The EOS system includes tools, concepts, training, facilitation materials, methods, and processes. Franchisees conduct sessions with clients (Clients), including introductory meetings, Focus Days, Vision Building days, Quarterly Pulsing, and Annual Planning sessions. Franchisees are individually owned and operated, responsible for complying with all applicable laws and regulations, and supervising personnel. They market and sell services and products directly to clients worldwide, subject to the terms of the franchise agreement and applicable laws. The franchise system includes know-how, trade dress, operational specifications, management and financial control procedures, training and assistance, advertising programs, and intellectual property.
Company Profile
Website:www.eosworldwide.com
Year Founded:2021
EOS Worldwide Franchise Cost
| Franchise Fee: | $52,895Key Metric |
| Total Investment: | $61,045 - $150,660Key Metric |
| Liquid Capital: | Not specified |
| Royalty Fee: | Not specified |
| Marketing Fee: | 1% of gross sales |
Quick ROI Calculator
Based on EOS Worldwide's actual financial data
Outlet Counts by Year
Historical outlet data extracted from FDD documents
2024 (Latest):732
Start: 662
End: 732
Net: +70
2023:662
Start: 525
End: 662
Net: +137
2022:525
Start: 389
End: 525
Net: +136
* Data extracted from FDD documents using AI analysis
Additional Information
Processing Franchise Details
Our AI is extracting detailed information from franchise documents.
Company history, executive team profiles, and legal disclosures will appear here once document processing is complete.
Search Interests & Trends
Search Volume Data and Trend Analysis
Monthly Searches
0
avg per month
YoY Growth
+0.0%
year over year
MoM Growth
+0.0%
month over month
Peak Season
January
highest interest
Google Trends Interest Over Time
Search interest patterns for EOS Worldwide from DataForSEO Trends API
Peak Interest
100
Data points: 52Average interest: 1.9
Interest level represents relative search popularity on a scale where the peak search interest is normalized to 100.
Top Interest by Region
Geographic distribution of search interest for EOS Worldwide
Page 1 of 2 (10 regions)
New York
100%
Michigan
82%
Colorado
81%
Indiana
55%
Texas
48%
Showing 1-5 of 10 regions
Age Demographics
Search interest by age group for EOS Worldwide
25-34
43%
35-44
100%
Gender Demographics
Search interest by gender for EOS Worldwide
female
100%
male
51%
AI-Powered Due Diligence Analysis
Our advanced AI analyzes Franchise Disclosure Documents (FDDs) to identify potential risks and opportunities across 10 critical categories.
10
High Risk
Critical items
30% of total
19
Medium Risk
Monitor closely
58% of total
4
Low Risk
Manageable items
12% of total
33
Total Items
Factors analyzed
10 categories
5.91
Overall Score
Low RiskHigh Risk
010
Franchisor Stability Risks
4 risks identified
1
2
1
Rapid Growth Leading to Operational Strain
Medium
Explanation:
- Item 20 reveals significant franchise growth from 389 outlets in 2022 to a projected 732 in 2024. This rapid expansion can strain the franchisor's resources, potentially leading to inadequate training, support, and quality control for franchisees.
- Rapid growth can also lead to increased competition among franchisees for clients, especially if the franchisor hasn't adequately planned for market saturation.
Potential Mitigations:
- Carefully review the franchisor's plans for managing growth, including training programs, support infrastructure, and marketing strategies. Inquire about their experience managing rapid expansion in the past.
- Analyze the market density in your target territory to assess the potential for oversaturation and competition.
- Discuss with existing franchisees their experiences with the level of support received during this period of growth.
FDD Citations:
- Item 20, Table 1: Shows the rapid increase in franchise outlets.
Limited History/Undefined Founding Date
High
Explanation:
- The FDD lacks a clear founding date for "Yury Test." A new or recently established franchisor has a limited track record, increasing the risk of unforeseen challenges and potential business failure.
- Without a clear history, it's difficult to assess the franchisor's long-term viability and ability to provide ongoing support to franchisees.
Potential Mitigations:
- Thoroughly research the franchisor's management team and their experience in the industry. Look for evidence of successful business ventures in the past.
- Speak with existing franchisees to gauge their satisfaction with the franchisor's support and the overall performance of their businesses.
- Seek legal and financial advice to assess the risks associated with investing in a relatively new franchise system.
FDD Citations:
- Franchise Context: "Founded: undefined" indicates a lack of clear information about the franchisor's history.
Ceased Operations for Other Reasons
Medium
Explanation:
- While terminations, non-renewals, and reacquisitions by the franchisor are zero or very low, Item 20, Table 3, shows a number of franchises "Ceased Operations Other Reasons." This lack of transparency about the reasons for ceasing operations is concerning. It could indicate underlying issues within the franchise system that are not being disclosed.
Potential Mitigations:
- Request clarification from the franchisor regarding the specific reasons for these closures. Inquire about any common factors or trends among the ceased operations.
- Contact former franchisees whose businesses ceased operations to understand their perspectives and reasons for leaving the system.
FDD Citations:
- Item 20, Table 3: "Ceased Operations Other Reasons" entries throughout the table.
Potential for Undisclosed Litigation
Low
Explanation:
- Item 10 mentions "routine litigation incidental to the business." While this phrase is common, it lacks specificity and could potentially mask less routine or more significant legal issues that could impact franchisees.
Potential Mitigations:
- Request further information from the franchisor about the nature of this "routine litigation." Ask for details about the types of cases, frequency, and potential impact on the franchise system.
- Conduct independent research to identify any public records of litigation involving the franchisor.
FDD Citations:
- Item 10, Section B: "No such party has any pending actions, other than routine litigation incidental to the business..."
Disclosure & Representation Risks
3 risks identified
3
Vague and Unquantified Renewal Terms
Medium
Explanation:
- Sections 2.3, 2.4, and 2.5 discuss renewal terms but lack specific details about the conditions for renewal, the length of the renewal term, and the franchisor's discretion in granting renewals. The phrase "Renewal by Law" is particularly vague and doesn't specify which laws govern this process.
- This ambiguity creates uncertainty for the franchisee regarding their long-term investment and business planning.
Potential Mitigations:
- Request clarification from the franchisor regarding the specific criteria for renewal, including financial performance metrics, operational standards, and any other relevant factors.
- Negotiate for more concrete and favorable renewal terms in the franchise agreement.
- Consult with a franchise attorney to review the renewal clauses and assess the potential risks.
FDD Citations:
- Item 23, Section 2.3: "Renewal Terms"
- Item 23, Section 2.4: "Extension of Term"
- Item 23, Section 2.5: "Renewal by Law"
Broad Franchisor Discretion in Territory Alterations
Medium
Explanation:
- Section 3.3 grants the franchisor significant discretion to alter, reduce, or realign the franchisee's territory, potentially impacting the franchisee's customer base and revenue.
- The franchisor's right to establish alternative distribution channels (Section 3.4) further increases the risk of market encroachment.
Potential Mitigations:
- Negotiate for clearly defined territorial boundaries and limitations on the franchisor's ability to modify the territory.
- Seek clarification on the circumstances under which the franchisor might exercise its right to alter the territory.
- Analyze the competitive landscape and potential impact of alternative distribution channels.
FDD Citations:
- Item 23, Section 3.3: "Rights We Reserve"
- Item 23, Section 3.4: "Alternative Channels of Distribution"
Numerous and Potentially Onerous Fees
Medium
Explanation:
- Section 4 outlines a complex fee structure, including initial fees, monthly membership fees, brand fund contributions, technology fees, warm leads fees, speaking referral fees, boot camp fees, and startup fees.
- The lack of specific amounts for many of these fees makes it difficult to assess the overall financial burden and potential profitability.
Potential Mitigations:
- Request a detailed breakdown of all fees and payment schedules.
- Compare the fee structure to other franchise opportunities in the same industry.
- Develop a comprehensive financial projection that incorporates all potential fees.
FDD Citations:
- Item 23, Section 4: "Fees and Payment"
Financial & Fee Risks
3 risks identified
1
2
High Boot Camp Costs and Non-Refundable Nature
High
Explanation:
- The $45,000 Boot Camp fee is substantial and represents a significant upfront investment. Additional travel, lodging, meal, and wage expenses further increase this cost.
- The non-refundable nature of the fee, even if waived for some, creates a financial risk if the franchisee is unable to complete the program or the franchise relationship terminates early.
- International Boot Camp attendance, even with permission, offers no fee adjustments, posing a risk of higher costs.
Potential Mitigations:
- Carefully review the Boot Camp curriculum and requirements to ensure alignment with your skills and business goals.
- Develop a detailed budget that includes all Boot Camp-related expenses to understand the full financial commitment.
- Secure financing for the Boot Camp and associated costs to avoid financial strain.
- Confirm the waiver policy for repeat attendees in writing to avoid misunderstandings.
FDD Citations:
- Item 5: "The cost of the Boot Camp for new franchisees in 2025 is $45,000..."
- Item 5: "No refunds or adjustments to your Boot Camp Fee will be provided if you attend any such international Boot Camp..."
Mandatory Quarterly Continuing Education (QCE) Costs
Medium
Explanation:
- Mandatory QCEs represent an ongoing and potentially unpredictable expense, including registration fees, travel, lodging, and meals.
- The FDD doesn't specify the frequency or cost of QCEs beyond the initial registration fee, making it difficult to budget accurately.
- The possibility of mandatory in-person attendance adds to the travel and logistical expenses.
Potential Mitigations:
- Inquire about the estimated annual cost of QCEs, including frequency, location, and typical expenses.
- Factor QCE costs into your ongoing operational budget.
- Explore options for minimizing travel expenses, such as shared transportation or virtual attendance when possible.
FDD Citations:
- Item 6: "...registration fee, currently $1,000. See Item 6 for additional information about our QCEs and associated fees."
- Item 12: "You must attend QCEs as part of your tier requirements."
Potential for Mandatory Cooperative Advertising or Special Marketing Programs
Medium
Explanation:
- The franchisor reserves the right to implement mandatory cooperative advertising or special marketing programs in the future.
- These programs could involve a flat fee or a percentage of revenue, adding to the franchisee's marketing expenses.
- The lack of current details about these potential programs makes it difficult to assess their financial impact.
Potential Mitigations:
- Inquire about the franchisor's plans for cooperative advertising and special marketing programs.
- Include a contingency in your marketing budget for potential future program costs.
- Request details about the decision-making process for these programs and franchisee involvement.
FDD Citations:
- Item 26: "...we may require that you participate in cooperative advertising or other special marketing programs in the future."
Legal & Contract Risks
3 risks identified
1
1
1
Superseding State Law (RCW 19.100.180)
Medium
Explanation:
- Washington's Franchise Investment Protection Act (FIPA) may override provisions in the Franchise Agreement, especially regarding termination and renewal. This creates uncertainty about the enforceability of certain contract terms.
Potential Mitigations:
- Carefully review the Franchise Agreement with legal counsel specializing in Washington franchise law to identify any conflicts with RCW 19.100.180.
- Seek clarification from the franchisor on how they address potential conflicts between the agreement and state law.
FDD Citations:
- Item 2: "RCW 19.100.180 may supersede provisions in the Franchise Agreement...concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise."
Mandatory Washington Jurisdiction
Low
Explanation:
- Disputes related to franchises purchased in Washington may be subject to mandatory arbitration, mediation, or litigation in Washington, potentially increasing travel and legal costs for franchisees outside the state.
Potential Mitigations:
- Factor potential travel and legal costs associated with Washington jurisdiction into your budget.
- Negotiate with the franchisor for a more convenient dispute resolution location if possible.
FDD Citations:
- Item 3: "In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington..."
Voiding of Release/Waiver of FIPA Rights
High
Explanation:
- Any attempt to waive rights under Washington's FIPA is generally void, except under specific circumstances involving negotiated settlements with independent counsel. This protects franchisees from unknowingly signing away important legal protections.
Potential Mitigations:
- Never sign any document waiving FIPA rights without consulting independent legal counsel specializing in Washington franchise law.
FDD Citations:
- Item 4: "A release or waiver of rights...purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act...is void..."
Territory & Competition Risks
2 risks identified
1
1
Limited Enforceability of Non-Compete
High
Explanation:
- The FDD mentions that the non-compete clause is subject to Indiana Code § 23-2-2.7-1(2) and § 23-2-2.7-2(4) which govern unfair competition. This suggests the non-compete may be limited in scope and enforceability. The specific language of the statute needs to be reviewed to understand the limitations on the franchisor's ability to compete with the franchisee. A narrowly defined or weakly enforced non-compete could expose the franchisee to competition from the franchisor or other franchisees, potentially impacting profitability.
- The FDD does not provide the specific details of the non-compete clause within Item 3. This lack of transparency makes it difficult to assess the true level of protection offered.
Potential Mitigations:
- Carefully review Indiana Code § 23-2-2.7-1(2) and § 23-2-2.7-2(4) to fully understand the limitations on the franchisor's ability to compete. Consult with a legal professional specializing in Indiana franchise law.
- Request a copy of the Franchise Agreement and carefully review the specific language of the non-compete clause. Negotiate for stronger protections if necessary.
- Research the franchisor's history of enforcing non-compete agreements.
FDD Citations:
- Item 3: "Item 12 and Section 3.1 of the Franchise Agreement are subject to Indiana Code § 23-2-2.7-1(2) and § 23-2-2.7-2(4) which prohibit us from competing unfairly with you within a reasonable area."
Pre-Franchise Due Diligence Costs
Medium
Explanation:
- Item 10 highlights the need for professional financial and legal advice, indicating potential costs associated with evaluating the FDD, Franchise Agreement, and compliance obligations. These costs can be substantial and are borne by the prospective franchisee before any revenue is generated.
- Additional legal and administrative fees may be incurred if forming a new business entity.
Potential Mitigations:
- Budget carefully for these pre-franchise expenses. Obtain quotes from financial and legal advisors upfront.
- Explore financing options to cover these initial costs.
- Thoroughly review the FDD and Franchise Agreement yourself to gain a basic understanding before consulting with professionals, potentially reducing consultation time and costs.
FDD Citations:
- Item 10: "We strongly advise you to consult with your own financial and legal advisors, and we anticipate that you will incur professional fees related to your evaluation of this Disclosure Document, including the Franchise Agreement and evaluating compliance obligations with any applicable laws or regulations as described in Item 1. In addition, you may form an entity for your Franchised Business, which will incur legal and administrative fees and expenses."
Regulatory & Compliance Risks
4 risks identified
1
2
1
Lack of Employee Training Oversight and Potential Non-Compliance
High
Explanation:
- The FDD states the franchisor does not provide employee training unless requested and reserves the right to refuse. This lack of standardized training can lead to inconsistent service delivery, brand damage, and potential non-compliance with employment laws and industry-specific regulations.
- Without mandatory training programs, franchisees may not be adequately equipped to handle sensitive customer data, comply with advertising regulations, or manage employee relations in accordance with the law. This exposes both the franchisee and the franchisor to legal and reputational risks.
Potential Mitigations:
- Implement a baseline training program for all franchisee employees covering essential areas like customer service, data privacy, and regulatory compliance. While the FDD mentions the franchisor can refuse training, offering a basic program mitigates significant risks.
- Develop clear guidelines and resources on employment law compliance, including hiring practices, wage and hour regulations, and anti-discrimination policies. Provide regular updates and access to legal counsel specializing in franchise employment law.
- Consider offering specialized training programs on industry-specific regulations, particularly if the business services involve sensitive data or regulated activities.
FDD Citations:
- Item 7: "We do not provide any assistance with respect to hiring your employees. Unless requested by you, we do not provide training to your employees and we reserve the right to not train your employees upon request."
- Implied throughout the FDD: Lack of explicit mention of compliance training programs or resources.
Dependence on Approved Suppliers and Potential Supply Chain Disruptions
Medium
Explanation:
- The FDD mentions Approved Suppliers but doesn't detail the terms, exclusivity, or potential risks associated with this dependency. Supply chain disruptions, price increases, or quality issues from these suppliers could significantly impact franchisee profitability and operations.
- Lack of transparency regarding supplier relationships raises concerns about potential conflicts of interest or inflated pricing that could disadvantage franchisees.
Potential Mitigations:
- Disclose the full list of Approved Suppliers in Item 8 and provide details on the selection criteria, contract terms, and any exclusive arrangements. Transparency builds trust and allows franchisees to assess potential risks.
- Develop contingency plans for supply chain disruptions, including identifying alternative suppliers or allowing franchisees to source approved products elsewhere under specific circumstances.
- Establish a clear process for franchisee feedback on supplier performance and address any concerns promptly to maintain quality and fair pricing.
FDD Citations:
- Item 3: "Provide you with information regarding sources for supplies...including a list of Approved Suppliers..."
- Item 8: (Referenced in Item 3 but details are not provided in the given excerpt)
Limited Term of Access to Operations Manual and Training Platform
Medium
Explanation:
- The FDD states that access to the Operations Manual and online training platform terminates upon expiration or termination of the franchise agreement. This limits the franchisee's ability to operate independently or transition the business smoothly after the agreement ends.
- Loss of access to these crucial resources could hinder the franchisee's ability to sell their business or maintain operational consistency during a transition period.
Potential Mitigations:
- Clarify the terms of access to these resources after termination or expiration. Consider offering continued access for a limited period or allowing franchisees to purchase a copy of the Operations Manual.
- Provide clear guidelines on the transfer of intellectual property and operational knowledge in the event of a sale or transfer of the franchise.
- Offer support and resources to franchisees during the transition period to minimize disruption and ensure business continuity.
FDD Citations:
- Item 4: "Your rights to use and access to our Operations Manual...will terminate on the termination or expiration of your Franchise Agreement."
- Item 5: "Your rights to use and access our online training platform...will terminate on the termination or expiration of your Franchise Agreement."
Unclear Regulatory Compliance Guidance and Support
Low
Explanation:
- While Item 10 advises consulting legal advisors for compliance, the FDD lacks specific details on regulatory requirements relevant to the franchise business. This leaves franchisees with the burden of navigating complex regulations without sufficient guidance from the franchisor.
Potential Mitigations:
- Include a section in the FDD outlining key regulatory areas relevant to the franchise business, such as data privacy, advertising standards, or industry-specific licensing requirements.
- Provide resources and checklists to help franchisees understand and comply with these regulations. Consider offering webinars or workshops on compliance topics.
- Establish a point of contact within the franchisor organization to address franchisee questions and concerns regarding regulatory compliance.
FDD Citations:
- Item 10: "We strongly advise you to consult with your own financial and legal advisors, and we anticipate that you will incur professional fees related to your evaluation of this Disclosure Document, including the Franchise Agreement and evaluating compliance obligations with any applicable laws or regulations as described in Item 1."
Franchisor Support Risks
3 risks identified
1
2
Unilateral Brand Fund Control and Transparency
High
Explanation:
- The franchisor has complete control over the proposed Brand Development Fund, including spending decisions, allocation, and even reimbursement of administrative costs. This lacks transparency and poses a risk of inefficient use of funds or prioritization of franchisor interests over franchisee benefit.
- The FDD states the fund "will not be used to defray any of our general operating expenses, except as described in the paragraph above," but the preceding paragraph allows for reimbursement of a broad range of costs, potentially blurring the lines.
- While an annual statement is provided, it's unaudited, further limiting transparency.
Potential Mitigations:
- Negotiate for greater transparency and franchisee representation in Brand Fund decisions. Request access to audited financial statements and a clear breakdown of expenditures.
- Seek clarification on the specific "indirect costs" that can be reimbursed from the fund.
- Consider the potential financial burden of contributing to a fund with limited control over its use.
FDD Citations:
- Item 11: "We will have the right to determine the manner in which the contributions to the Brand Development Fund are spent…We will have the right to reimburse ourselves…for the total costs (including indirect costs)…administering the Brand Development Fund…"
- Item 11: "…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…"
Limited Marketing Support and Local Relevance
Medium
Explanation:
- The franchisor explicitly states no obligation to spend Brand Fund contributions in proportion to franchisee contributions or to ensure any direct benefit to franchisees.
- There's no guarantee of local advertising, which could hinder franchisee marketing efforts.
Potential Mitigations:
- Clarify the franchisor's overall marketing strategy and how it will support individual franchisees.
- Develop a strong local marketing plan to supplement any national or regional campaigns.
- Inquire about co-op marketing opportunities or available local marketing resources.
FDD Citations:
- Item 11: "There will however never be any obligation to ensure that expenditures…are proportionate or equivalent to contributions…or that any franchisees will benefit directly…"
- Item 11: "We will not require ourselves to spend any amount on advertising in any franchisee’s area or territory…"
Mandatory Social Media Compliance and Brand Guidelines
Medium
Explanation:
- Franchisees are required to comply with strict social media guidelines and brand standards, potentially limiting their flexibility and creativity in online marketing.
- The FDD references multiple documents (Franchise Agreement, Operations Manual, etc.) for these requirements, making it complex to understand the full scope of restrictions.
Potential Mitigations:
- Carefully review all relevant documents to fully understand the social media requirements and restrictions.
- Seek clarification on any ambiguous or unclear guidelines.
- Ensure alignment between personal social media presence and franchise brand standards.
FDD Citations:
- Item 11: "You are required to comply with the restrictions and requirements described below in this Item 11 under “Websites” and any other Franchise System Standards described in the Franchise Agreement, the Operations Manual, or otherwise in writing."
- Item 11: "You must abide by all official EOS Worldwide brand guidelines and best practices…"
Exit & Transfer Risks
5 risks identified
1
3
1
Restrictive Transfer Provisions & Fees
Medium
Explanation:
- Item 4 mentions releases and waivers related to franchise transfers can be void except under specific conditions (negotiated settlement with independent counsel). This could complicate the transfer process and potentially limit your options.
- Item 6 states transfer fees are allowed only to cover reasonable costs. Without clear definition, this could lead to disputes over what constitutes "reasonable."
Potential Mitigations:
- Carefully review the Franchise Agreement for all clauses related to transfers and terminations, paying close attention to any restrictions or required approvals.
- Consult with an experienced franchise attorney to understand your rights and obligations regarding transfers.
- Inquire about the franchisor's typical transfer process and associated costs. Request examples of past transfer fees and their justification.
FDD Citations:
- Item 4: "In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2)."
- Item 6: "Transfer fees are collectable only to the extent that they reflect the franchisor’s reasonable estimated or actual costs in effecting a transfer."
Limited Termination Rights
Medium
Explanation:
- Item 7 states termination by the franchisee is allowed under state law. This may not provide as much flexibility as explicitly defined termination clauses within the Franchise Agreement.
- Reliance solely on state law for termination can create uncertainty and potential legal challenges.
Potential Mitigations:
- Thoroughly research the relevant state laws regarding franchise terminations to understand your rights.
- Negotiate with the franchisor to include specific and reasonable termination clauses within the Franchise Agreement.
- Consult with a franchise attorney to review the termination provisions and ensure they align with your interests.
FDD Citations:
- Item 7: "The franchisee may terminate the Franchise Agreement under any grounds permitted under state law."
Potential for Franchisor Buy-Back
High
Explanation:
- Item 8 highlights that the franchisor cannot repurchase the franchisee's business without consent unless terminated for good cause. This creates a risk of the franchisor seeking to terminate for potentially dubious "good cause" reasons to reacquire the business.
- The definition of "good cause" can be subjective and lead to disputes.
Potential Mitigations:
- Carefully review the Franchise Agreement's definition of "good cause" for termination.
- Negotiate clear and objective performance standards to avoid arbitrary termination.
- Consult with a franchise attorney to ensure the buy-back provisions are fair and reasonable.
FDD Citations:
- Item 8: "Provisions in the Franchise Agreement or related agreements that permit the franchisor to repurchase the franchisee’s business for any reason during the term of the Franchise Agreement without the franchisee’s consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause."
Conflict with State Law Regarding Non-Competition and Non-Solicitation
Medium
Explanation:
- Items 14 and 15 describe limitations on non-competition and non-solicitation agreements under Washington law. Any conflicting provisions in the Franchise Agreement are void. This could limit the franchisor's ability to enforce such agreements, potentially increasing competition.
Potential Mitigations:
- Review the Franchise Agreement for any non-competition or non-solicitation clauses and compare them to Washington state law (RCW 49.62.020, 49.62.030, and 49.62.060).
- Consult with a legal professional specializing in Washington franchise law to ensure compliance.
FDD Citations:
- Item 14: "Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable..."
- Item 15: "RCW 49.62.060 prohibits a franchisor from restricting..."
Superseding State Law
Low
Explanation:
- Item 2 indicates that Washington state law (RCW 19.100.180) may supersede provisions in the Franchise Agreement. This could lead to conflicts between the agreement and state law, potentially impacting termination and renewal rights.
Potential Mitigations:
- Carefully review both the Franchise Agreement and RCW 19.100.180 to understand potential conflicts.
- Consult with a franchise attorney specializing in Washington law to clarify any discrepancies and ensure your interests are protected.
FDD Citations:
- Item 2: "RCW 19.100.180 may supersede provisions in the Franchise Agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise."
Operational & Brand Risks
3 risks identified
2
1
Dependence on Franchisor's Technology and Systems
High
Explanation:
- The FDD highlights reliance on the franchisor's Operations Manual, online training platform, and other EOS systems, with access terminating upon agreement termination. This creates dependence and limits flexibility if the relationship ends.
- Mandatory computer hardware/software specified by the franchisor can lead to high costs, compatibility issues, and dependence on their chosen vendors.
- Lack of control over these crucial elements can hinder independent operation and future business prospects.
Potential Mitigations:
- Negotiate for continued access to essential systems and data post-termination.
- Clarify ownership and usage rights for software and data generated during the franchise term.
- Assess the long-term costs and implications of the required technology, including potential upgrades and replacements.
FDD Citations:
- Item 4: "Your rights to use and access to our Operations Manual and such other materials will terminate on the termination or expiration of your Franchise Agreement."
- Item 5: "Your rights to use and access our online training platform and such other EOS systems will terminate on the termination or expiration of your Franchise Agreement."
- Computer System Requirements: "You must purchase or lease computer equipment, including hardware and software we specify, for your Franchised Business."
Limited Marketing Control and Potential Ineffective Brand Fund Management
High
Explanation:
- The franchisor reserves the right to establish a Brand Development Fund with mandatory contributions, but retains complete control over its usage, potentially leading to ineffective spending and lack of localized marketing benefit.
- No guarantee of proportionate spending in a franchisee's area, despite mandatory contributions, raises concerns about ROI.
- Franchisor can reimburse itself for administrative costs from the fund, potentially reducing the amount allocated to actual marketing activities.
Potential Mitigations:
- Carefully review the terms and conditions of any future Brand Development Fund agreement.
- Seek transparency on fund allocation and past performance data if available.
- Negotiate for local marketing control or co-op programs to supplement national campaigns.
FDD Citations:
- Item 11: "We will have the right to determine the manner in which the contributions to the Brand Development Fund are spent."
- Item 11: "There will however never be any obligation to ensure that expenditures of the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to contributions into the Brand Development Fund by franchisees operating in that geographic area."
- Item 11: "We will have the right to reimburse ourselves out of the Brand Development Fund for the total costs (including indirect costs) ... of administering the Brand Development Fund."
Lack of Employee Training and Hiring Support
Medium
Explanation:
- The franchisor provides no assistance with employee hiring or training, placing the burden entirely on the franchisee. This can be challenging for new business owners and impact service quality.
- While the franchisor reserves the right to refuse employee training even upon request, this creates uncertainty and potential inconsistency across the franchise system.
Potential Mitigations:
- Develop a robust recruitment and training plan independently.
- Seek external HR and training resources.
- Negotiate for at least basic training materials or guidelines for employees.
FDD Citations:
- Ongoing Assistance: "We do not provide any assistance with respect to hiring your employees. Unless requested by you, we do not provide training to your employees and we reserve the right to not train your employees upon request."
Performance & ROI Risks
3 risks identified
1
2
Misleading Information or Promises from Franchisor Representatives
High
Explanation:
- Items 9, 10, and 11 address potential misrepresentations by franchisor representatives regarding financial performance, operating costs, or side agreements. These misrepresentations could induce a prospective franchisee to invest based on inaccurate or misleading information, leading to significant financial losses and disappointment.
- Verbal promises or guarantees outside the FDD are not legally binding and create a high risk of unmet expectations.
Potential Mitigations:
- Carefully review Item 19 for validated financial performance representations. Compare any verbal claims with the documented information in Item 19. Discrepancies should be a major red flag.
- Scrutinize Items 5, 6, 7, and 11 for detailed cost breakdowns and obligations. Compare these figures with any verbal representations about operating costs. Seek clarification on any discrepancies.
- Document all communications with franchisor representatives, especially regarding financial projections or operational expenses. If any promises are made, request that they be added to the Franchise Agreement as an addendum.
- Consult with a franchise attorney to review the FDD and Franchise Agreement before signing any documents. An attorney can help identify potential misrepresentations and protect your interests.
FDD Citations:
- Item 9: "Did any employee or other person speaking on Franchisor’s behalf provide any statistical information...not contained in Item 19...or that is contrary to or different from the information in Item 19...?"
- Item 10: "Did any employee or other person speaking on Franchisor’s behalf make any statement or promise regarding the costs...not contained in Items 5, 6, 7 or 11...or that is contrary to or different from the information...?"
- Item 11: "Did anyone offer or promise you any amendment, addendum, “side deal,” “side letter” or similar arrangement that is different from or supplemental to the Franchise Agreement?"
Lack of Financial Performance Representations (Item 19)
Medium
Explanation:
- While the provided excerpt doesn't contain Item 19, Item 9's reference to it suggests its importance. The absence of financial performance representations in Item 19 makes it difficult to assess the potential profitability of the franchise. This lack of information increases the risk of making an uninformed investment decision.
Potential Mitigations:
- Request information about the financial performance of existing franchisees directly from the franchisor. While this information may not be as reliable as Item 19 disclosures, it can provide some insight into potential revenue and expenses.
- Speak with existing franchisees to understand their financial experiences. Ask about their revenues, expenses, and profitability. Be aware that individual experiences can vary.
- Develop a detailed financial model based on available information and industry benchmarks. This model should include realistic projections for revenue, expenses, and profitability.
- Consult with a financial advisor to assess the financial viability of the franchise opportunity.
FDD Citations:
- Item 9 references Item 19 as the source of validated financial performance information.
Unrealistic Expectations Based on Limited Franchisee Interaction
Medium
Explanation:
- Item 12 asks if the prospective franchisee has spoken to other franchisees. Limited interaction with existing franchisees can lead to unrealistic expectations about the business. Understanding the day-to-day realities and challenges of running the franchise is crucial for making an informed decision.
Potential Mitigations:
- Contact as many existing franchisees as possible. Ask about their experiences, challenges, and successes. Inquire about the accuracy of the franchisor's representations.
- Join franchisee associations or online forums to connect with other franchisees and gain insights into their experiences.
- Visit existing franchise locations and observe operations firsthand. This can provide valuable insights into the daily realities of running the business.
FDD Citations:
- Item 12: "Have you spoken to any other franchisee(s) of this system before deciding to purchase this Franchised Business? If so, who?"
FDD Documents by Year
Download and view official Franchise Disclosure Documents
FDD Year: 2025
Uploaded: 8/8/2025
FDD Year: 2024
Uploaded: 8/25/2025
FDD Documents
Access and download Franchise Disclosure Documents by year