On what basis does Engineering For Kids designate businesses as 'Large Accounts'?

According to Engineering For Kids' 2025 Franchise Disclosure Document, a 'Large Account' is defined as a location from which programs may be conducted that have multiple affiliated outlets. These are designated based on Engineering For Kids' determination that these businesses in multiple locations are deemed of strategic importance to them. Examples of such accounts include chains of children's afterschool care centers or preschools.

Engineering For Kids retains the right to negotiate the terms and conditions of all programs conducted at these Large Accounts. This includes the programs offered, rates, and services performed. The franchisor states that this negotiation enhances the potential value of the Engineering For Kids system and benefits both the franchisor and its franchisees.

If Engineering For Kids establishes a Large Account program, franchisees must service Large Account clients within their territory on behalf of the franchisor, adhering to the pricing and terms negotiated by Engineering For Kids with the client. Franchisees cannot engage in relationships with Large Account clients that conflict with the franchisor's arrangements. Franchisees have the option to decline participation in a specific Large Account contract if it requires additional volume rebates.

Franchisees can terminate their participation in the Large Account program with 30 days' written notice. However, if a franchisee terminates participation or fails to meet the obligations of a Large Account agreement, Engineering For Kids has the right to service or authorize others to service those clients within the franchisee's territory without compensating the franchisee. This is an exception to the franchisee's territorial protection, and Engineering For Kids is not obligated to readmit the franchisee to the program or transfer any Large Account client back to them.