Can Engineering For Kids assign its right of first refusal to another party?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right, exercisable within thirty (30) days after receipt of the notice specified in Section 14.2, to send written notice to you that we intend to purchase the interest proposed to be Transferred. We may assign our right of first refusal to someone else either before or after we exercise that right. However, our right of first refusal will not apply with regard to a Transfer under Section 14.6, or a Transfer to your parents, spouse, son, daughter, or mother or father in-law (including Transfers to your parents, spouse, son, daughter, or mother or father in-law as a result of death or incapacity as described in Section 14.7).
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids retains the right to assign its right of first refusal to another party. This means that if a franchisee decides to sell their Engineering For Kids franchise, they must first offer Engineering For Kids the opportunity to purchase it. However, Engineering For Kids can then assign this right to another individual or entity, allowing that third party to purchase the franchise instead.
This right of first refusal gives Engineering For Kids some control over who becomes a franchisee within their system. By assigning this right, Engineering For Kids can strategically choose who they want to be a part of their franchise network.
However, there are exceptions to this right of first refusal. Engineering For Kids' right of first refusal does not apply to transfers to the franchisee's parents, spouse, son, daughter, or mother or father-in-law. This exception allows for family succession without interference from Engineering For Kids or its assignee.