Does the continuation of an Engineering For Kids franchise depend on other contingencies?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
se that curriculum to conduct the Programs directly with their students in the schools.
Continuation of your franchise or territorial rights does not depend on your achieving a certain sales volume, market penetration, or other contingency, other than satisfying the "Minimum Performance Standards" described below and remaining in compliance with the Franchise Agreement.
Large Accounts Program
"Large Accounts" means any location from which Programs may be conducted that have multiple affiliated outlets (such as a chain of children's afterschool care centers, or preschools) that we designate based upon our determination that these businesses in multiple locations are deemed of strategic importance to us.
Source: Item 12 — TERRITORY (FDD pages 36–41)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, the continuation of a franchise is primarily dependent on meeting the Minimum Performance Standards and remaining in compliance with the Franchise Agreement. These standards require the franchise to generate a minimum level of Gross Sales on an annual basis for each Operating Year. The first Operating Year begins when the first Royalty payment and Sales Report are due.
The specific Minimum Performance Standards for Engineering For Kids are laid out in Item 12. For Year 1, there is no minimum Gross Sales requirement. However, in Year 2, the franchise must achieve $50,000 in Gross Sales, and by Year 3, this minimum increases to $75,000. Failure to meet these standards can lead to actions such as reducing the territory size, allowing other franchisees to provide services within the territory, or even establishing another Engineering For Kids business in the franchisee's territory.
It is important for a prospective Engineering For Kids franchisee to understand these Minimum Performance Standards and ensure they have a solid plan to meet or exceed these sales targets. Failing to do so could result in significant consequences that impact the profitability and viability of their franchise. While sales volume and market penetration are not direct contingencies for continuation, consistently failing to meet the Minimum Performance Standards puts the franchise at risk.