What is the definition of a 'Large Account' for Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.3. Large Accounts. The term "Large Account" 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. We will have the right to negotiate the terms and conditions of all Programs to be conducted at Large Accounts, in accordance with the terms of Section 6.9 below.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, a "Large Account" is defined as 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. Engineering For Kids designates these accounts based on their determination that these businesses in multiple locations are of strategic importance to them. Engineering For Kids retains the right to negotiate the terms and conditions of all programs conducted at these Large Accounts.
This definition is important for prospective franchisees because Engineering For Kids reserves specific rights regarding these Large Accounts. The franchisor can establish Engineering For Kids businesses at any Large Account inside or outside the franchisee's territory. This can occur regardless of the proximity to the franchisee's location or any potential impact on the franchisee's sales.
Engineering For Kids also reserves the right to administer a Large Accounts program for the System. If Engineering For Kids establishes a Large Account program, franchisees must service Large Account clients in their territory on behalf of Engineering For Kids, following the pricing and terms negotiated by Engineering For Kids with the Large Account client. The franchisee cannot engage in any relationship with a Large Account client that Engineering For Kids deems to conflict with the Large Account arrangement. Franchisees have the option to opt out of participating in a specific Large Account contract if additional volume rebates are required by the client. However, franchisees can terminate their participation in the Large Account program with 30 days written notice, but Engineering For Kids then has the right to service the Large Account clients inside the franchisee's territory without compensating the franchisee.