What constitutes abandonment of the Engineering For Kids Franchised Business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to maintain the continuity of operation of the Franchised Business and to preserve the integrity of the System, you must agree under the Franchise Agreement that if we request it, you will permit us to enter the premises of the Franchised Business and to operate and manage the Franchised Business ("Management" or "Manage") upon the occurrence of any of the following circumstances: (a) if you abandon or fail, or threaten to abandon or fail, to actively operate the Franchised Business for five or more consecutive days unless otherwise authorized by us; (b) if you fail to keep the Franchised Business open as required, or if you intend to close or notify any customers of your intent to close the Franchised Business, (c) if in our reasonable judgment the Franchised Business is in imminent risk of closure due to your financial condition or otherwise; (d) if you fail to complete scheduled Programs or services for clients or participants; (e) if any assets or equipment used in and required for the proper operation of the Franchised Business are repossessed or confiscated by appropriate authorities; and (f) upon the death or permanent disability of you, the Operating Principal, or an Owner of a controlling interest in you resulting, in our opinion, in your diminished capacity to properly operate the Franchised Business.
If we chose to exercise this right, we will use reasonable commercial efforts to provide notice to you before exercising our rights to Manage, but we may enter the premises of the Franchised Business and commence Management even if you have not received or responded to a notice.
We will have the right to manage the Franchised Business and to be compensated from the Gross Sales of the Franchised Business for all of our costs and expenses in conducting this Management.
Our right to Manage the Franchised Business will be in addition to, and not instead of, all other rights available to us under the Franchise Agreement (including the right, if applicable, to terminate the Franchise Agreement).
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, abandonment of the franchised business occurs under specific conditions that allow Engineering For Kids to step in and manage the business to maintain continuity.
The Franchise Agreement stipulates that Engineering For Kids can enter and manage the premises if a franchisee abandons or threatens to abandon active operation of the business for five or more consecutive days, unless the franchisor has authorized otherwise. Other conditions include failing to keep the business open as required, signaling intent to close the business to customers, or facing imminent closure due to financial instability. Furthermore, Engineering For Kids may intervene if scheduled programs or services are not completed for clients, if essential business assets or equipment are repossessed, or if the franchisee, Operating Principal, or a controlling owner experiences death or permanent disability that impairs their ability to operate the business effectively.
Engineering For Kids will try to notify the franchisee before taking over management but can proceed even without acknowledgment of the notice. If Engineering For Kids exercises its right to manage the business, it will be compensated for all costs and expenses from the Gross Sales generated by the franchise during the management period. This right to manage is in addition to any other rights Engineering For Kids has under the Franchise Agreement, including the right to terminate the agreement.