FranchiseVerdict
EOS Worldwide logo
FV-00863·STRONGExcellent86

EOS Worldwide

Education - Tutoring & Test PrepFranchising since 2021Website
Investment
$62K – $153K
23rd pct Tutoring & Te…
Avg revenue
$393K
19th pct Tutoring & Te…
Royalty
Units
738
97th pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $62K – $153K including a $5K franchise fee.
  • Average unit revenue of $393K/year (median $340K).
  • Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 16 loans (below the industry average).
  • No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.

Item 1 · who you're contracting with

The Franchisor

Legal entity
EOS Worldwide Franchising, LLC
Parent company
EOS HoldCo, LLC
Incorporated in
Delaware
HQ
4860 Washtenaw Avenue, Suite i #496, Ann Arbor, MI 48108
Auditor
RSM US LLP
Audited financials
Franchisor revenue
$21.0M
vs $23.8M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one EOS Worldwide unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $392,658
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $62K–$153K
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

41%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$55K
EBITDA margin
14.0%
Total invested
$134K
Payback
29 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 EOS Worldwide units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$550K

on $2.7M purchase

Total debt

$2.2M

SBA $1.4M + senior + seller note

Overview

About

EOS Worldwide franchisees operate business coaching and organizational consulting practices, delivering the Entrepreneurial Operating System (EOS) methodology to small and mid-market companies through facilitation, implementation, and ongoing advisory work. Franchisees conduct workshops, manage client relationships, and guide companies through quarterly planning and traction meetings. Revenue derives from coaching fees, implementation projects, and recurring advisory retainers.

CEO
Mark O’Donnell
Founded
2021
FDD year
2026
States available
45

Item 7 · what it costs

The Vitals

Total investment
$62K – $153K
All-in to open one unit
Liquid capital
$0 – $55K
Cash you must have on hand
Franchise fee
$5K
Royalty
$1,465 to $1,780 per month based on tier
Ad fund
n/d

Item 19

Financial Performance

Avg gross sales
$393K
Per unit, per year
Median gross sales
$340K
Item 19 type
Gross Session Revenue
Sample size
570 units
vs category median 12 · large
Range (low → high)
$4K$1.6M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank19th
vs Education - Tutoring & Test Prep peers
Investment cost rank23th
Lower investment ranks lower (better)
Royalty rate rank65th
Lower royalty = lower percentile (better)
Unit count rank97th
vs Education - Tutoring & Test Prep peers
Risk score rank22th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
738
Opened
75
Last reporting year
Closed
69
Turnover rate
9.3%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+0.8%
Net unit change last year
3-yr CAGR
+11.5%
Compounded over last 3 years
2024
738+6
Franchised units
2025
732
Franchised units
2026
662
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 5 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 5 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
16
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

49
Risk · 0-100
STRONG49 / 100

EOS Worldwide shows concerning stagnation with near-zero unit growth, undisclosed profitability, high royalty rates on unprotected territory, and structural incentives favoring franchisor over franchisee sustainability.

Score breakdown · what drove the 49 / 100 rating

  1. 01MINORStagnant unit growth (0.8% YoY on 738 units indicates system contraction or maturation crisis)
  2. 02MEDNet income not disclosed in FDD — unable to validate $392k avg revenue translates to acceptable profit after $17.6k-$21.4k annual royalties
  3. 03MINORHigh royalty burden ($1,465-$1,780/month = 4.5-5.4% of avg revenue) with unprotected territory creates race-to-bottom pricing
  4. 04MINORNo territory protection — franchisees directly compete with other EOS locations and cannibalization risk is high
  5. 05MINORLow franchise fee ($5,000) suggests weak franchisor support infrastructure and minimal franchisee commitment screening
  6. 06MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty and higher replacement costs

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
5 years
Renewal term
3 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
27 hrs
On-the-job training
0 hrs
POS system
EOS One / Practice Management CRM
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

100 numbers

Locked
(480) 518-••••
AZ
(773) 531-••••
CO
(732) 757-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

EOS Worldwide · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above