What agreements are managers of an Engineering For Kids franchise required to sign?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 1: THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES]
ITEM 1 THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES
This disclosure document describes a license to operate a franchised "Engineering For Kids" business as further described below. (For reference purposes in this Disclosure Document, we call the businesses in our system "Engineering For Kids" businesses as further described below.) The Franchisor is Engineering for Kids International, LLC ("we," "us," or "our"). "You" means the person or entity to whom we grant a franchise. If you are a corporation, partnership, limited liability company, or other entity, your owners must sign our "Guaranty and Assumption of Obligations," which means that all of our Franchise Agreement's provisions (Exhibit A of this disclosure document) will also apply to your owners. (See Item 15)
APPENDIX B
PERSONAL GUARANTY
In order to induce Engineering for Kids International, LLC ("Franchisor"), a Delaware limited liability company, to execute an Engineering For Kids Franchise Agreement (the "Agreement") with (the "Company"), a organized under the laws of , the undersigned individuals (collectively, the "Guarantors") unconditionally guarantee to Franchisor, its affiliates, and their successors and assigns that all of the Company's obligations under the Agreement, and under other agreements or arrangements between the Company and Franchisor, its affiliates, or their successors or assigns (collectively, the "Obligations"), will be punctually paid and performed. The liability of the Guarantors under this Guarantee is joint and several.
- 2.2.2. You and all Owners must sign and deliver to us the standard form of Engineering For Kids Franchise Agreement that we are then offering to new franchisees (or the standard form that we most recently offered to new franchisees, if we are not then offering to new franchisees) (the "Successor Franchise Agreement"). The terms of the Successor Franchise Agreement may be materially different from the terms of this Agreement (except that the Territory will remain the same during any renewal period) and may require you to pay different fees than those specified in this Agreement.
- 2.2.6. You and all Owners must sign and deliver to us a general release, in a form we require, of any and all claims against us, our affiliates, and our past, present and future officers, directors, members, managers, shareholders, and employees.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, if the franchisee is a corporation, partnership, limited liability company, or other entity, the owners must sign a "Guaranty and Assumption of Obligations." This agreement stipulates that all provisions of the Franchise Agreement will also apply to the owners. This requirement ensures that the franchisor, Engineering For Kids International, LLC, can enforce the franchise agreement's terms directly against the owners of the franchisee entity, providing an additional layer of security and accountability.
Additionally, the FDD mentions a Personal Guaranty agreement. To induce Engineering for Kids International, LLC to execute a Franchise Agreement with a company, the guarantors (undersigned individuals) must unconditionally guarantee that all of the company's obligations under the Agreement will be punctually paid and performed. The liability of the Guarantors under this Guarantee is joint and several.
Furthermore, when renewing the franchise agreement, both the franchisee and all owners must sign and deliver the standard form of Engineering For Kids Franchise Agreement that the franchisor is then offering to new franchisees, or the most recently offered standard form. They must also sign and deliver a general release, in a form required by Engineering For Kids, of any and all claims against the franchisor, its affiliates, and their officers, directors, members, managers, shareholders, and employees. These stipulations ensure that all parties are aligned with the current standards and release the franchisor from potential future liabilities upon renewal.