On what basis should an Engineering For Kids franchisee accept the obligation to develop the business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that your acceptance of the obligation to develop the Business is based on your own independent investigation of the suitability of the site for the Business and that you are solely responsible for all due diligence and related costs to determine the suitability of a proposed site for the Franchised Business, including the costs related to issues that arise after the commencement of construction.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, a franchisee's acceptance of the obligation to develop the business should be based on their own independent investigation of the suitability of the site for the business. This means that Engineering For Kids franchisees are solely responsible for conducting thorough due diligence to determine if a proposed site is appropriate for their franchised business. This includes covering all related costs, even those that may arise after construction has started.
Engineering For Kids may recommend or approve a site, or provide information regarding a site, but this does not constitute a representation or warranty of any kind about the site's suitability. The franchisor's recommendation only indicates that the site meets their then-acceptable criteria. These criteria, which have appeared effective with other sites, might not accurately reflect the potential for all sites. Demographic and other factors could change, altering the potential of a site.
Therefore, prospective Engineering For Kids franchisees must not rely solely on the franchisor's recommendations. They should conduct their own independent research and analysis to assess the site's potential. The uncertainty and changeable nature of the criteria and factors used to assess a site are beyond the franchisor's control, and Engineering For Kids is not responsible if a recommended site fails to meet the franchisee's expectations. Franchisees bear the ultimate responsibility for ensuring the chosen location is viable for their Engineering For Kids business.