What conditions must be met for Engineering For Kids to approve a transfer of a franchise?

Question

Accepted Answer

|  | Provision | Section in | Summary * |
|---|---|---|---|
|  |  | Franchise or other Agreement |  |
| c Requirements for you to renew or extend | 2.2 |  | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, not in material default, release, sign then-current form of Franchise Agreement (which may contain materially different terms and conditions than the original agreement), pay a renewal fee, and others; please refer to §§ 2.2.1 –2.2.7 in the Franchise Agreement. |
| d Termination by you | Not applicable |  | Subject to state law, you may not terminate the Franchise Agreement. |
| e Termination by us | Not applicable |  |  |
| without cause |  |  |  |
| f Termination by us with cause | 15 |  | Default under agreement, bankruptcy, abandonment, and other grounds; see § 15 of the Franchise Agreement. (Under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing.) |
| g “Cause” defined – | 15.3 |  | All other defaults not specified in §§ 15.1 and |
| curable defaults |  |  | 15.2 of the Franchise Agreement |
| h “Cause” defined – non-curable defaults | 15.1 and 15.2 |  | Bankruptcy, abandonment, conviction of felony, and others (but under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing). |
| i Your obligations on termination/ nonrenewal | 16 |  | Immediately stop operating the Franchised Business, stop all use of our trademarks, pay all amounts due, pay liquidated damages if termination was due to your default, and others; see §§ 16.1.1 – 16.1.4 of the Franchise Agreement. |
| j Assignment of | 13 |  | There are no limits on our right to assign the |
| contract by us |  |  | Franchise Agreement. |
| k “Transfer” by you – | 14.1 |  | Includes transfer of any interest. |
| defined |  |  |  |
| l Our approval of | 14.2 |  | We have the right to approve transfers. |
| transfer by you |  |  |  |
| m Conditions for our approval of transfer | 14.3 |  | Release, signature of new agreement, payment of transfer fee, meet then-current qualifications to our satisfaction, successfully complete training requirements and pay training fee, arrange to upgrade and conform Franchised |
|  | Provision | Section in Franchise or other Agreement | Summary * Business to then-current standards and specifications, sign our then-current form of personal guarantee;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 45–48)

What conditions must be met for Engineering For Kids to approve a transfer of a franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

	Provision	Section in	Summary *
		Franchise or other Agreement
c Requirements for you to renew or extend	2.2		Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, not in material default, release, sign then-current form of Franchise Agreement (which may contain materially different terms and conditions than the original agreement), pay a renewal fee, and others; please refer to §§ 2.2.1 –2.2.7 in the Franchise Agreement.
d Termination by you	Not applicable		Subject to state law, you may not terminate the Franchise Agreement.
e Termination by us	Not applicable
without cause
f Termination by us with cause	15		Default under agreement, bankruptcy, abandonment, and other grounds; see § 15 of the Franchise Agreement. (Under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing.)
g “Cause” defined –	15.3		All other defaults not specified in §§ 15.1 and
curable defaults			15.2 of the Franchise Agreement
h “Cause” defined – non-curable defaults	15.1 and 15.2		Bankruptcy, abandonment, conviction of felony, and others (but under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing).
i Your obligations on termination/ nonrenewal	16		Immediately stop operating the Franchised Business, stop all use of our trademarks, pay all amounts due, pay liquidated damages if termination was due to your default, and others; see §§ 16.1.1 – 16.1.4 of the Franchise Agreement.
j Assignment of	13		There are no limits on our right to assign the
contract by us			Franchise Agreement.
k “Transfer” by you –	14.1		Includes transfer of any interest.
defined
l Our approval of	14.2		We have the right to approve transfers.
transfer by you
m Conditions for our approval of transfer	14.3		Release, signature of new agreement, payment of transfer fee, meet then-current qualifications to our satisfaction, successfully complete training requirements and pay training fee, arrange to upgrade and conform Franchised
	Provision	Section in Franchise or other Agreement	Summary * Business to then-current standards and specifications, sign our then-current form of personal guarantee;