According to Engineering For Kids, what is an 'Assigned Area'?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not directly solicit participants located, and/or conduct Programs, in the territory of another Engineering For Kids Business (an "Assigned Area"). You may accept participants from an Assigned Area into Programs that you operate inside your Territory if you did not directly solicit those participants. If you receive an inquiry to conduct a Program at a location in an Assigned Area, you must refer that Program to the Engineering For Kids Business operating in that Assigned Area.
Source: Item 12 — TERRITORY (FDD pages 36–41)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, an 'Assigned Area' is defined as the territory of another Engineering For Kids Business. Franchisees are generally restricted from directly soliciting participants or conducting programs within these Assigned Areas. However, franchisees can accept participants from an Assigned Area into programs operated inside their own territory, provided they did not directly solicit those participants. If a franchisee receives an inquiry to conduct a program in an Assigned Area, they are obligated to refer that program to the Engineering For Kids Business operating in that specific Assigned Area.
This policy has several implications for prospective Engineering For Kids franchisees. It protects each franchisee's territory by limiting direct solicitation and program operations by others. However, it also means that franchisees must be careful not to overstep these boundaries in their marketing and program delivery efforts. The policy allows for accepting participants from other territories if they seek out the franchisee's programs independently, which can be a source of additional business.
It is important to note that Engineering For Kids franchisees do not receive an exclusive territory. This means that while there are some territorial protections, Engineering For Kids may establish or license others to establish Engineering For Kids Businesses at any location outside the franchisee's territory. Additionally, Engineering For Kids retains the right to conduct business activities, under any name, in any geographic area, including within the franchisee's territory. This includes the right to sell products and services through alternative distribution channels, such as e-commerce, at any location, including inside or outside the territory. These factors highlight the importance of understanding the specific terms and conditions of the Franchise Agreement regarding territorial rights and restrictions.