What is the definition of 'Management' in the context of Engineering For Kids?
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.
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, "Management" or "Manage" refers to the franchisor's right to enter the franchisee's business premises and operate the business under specific circumstances. These circumstances include abandonment of the business for five or more consecutive days without authorization, failure to keep the business open as required, imminent risk of closure due to financial condition, failure to complete scheduled programs, repossession of essential assets, or the death/permanent disability of the Operating Principal that diminishes the capacity to operate the business properly. This right is designed to maintain the continuity of the Engineering For Kids franchise and preserve the integrity of the system.
Engineering For Kids can exercise its right to manage the franchised business if any of the listed events occur. The FDD states that Engineering For Kids will try to give notice before beginning management, but they can still start managing the business even if the franchisee hasn't received or responded to the notice.
Engineering For Kids will be compensated for all costs and expenses incurred during the management of the Franchised Business from the Gross Sales. It's important to note that 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 if applicable. This means that even if Engineering For Kids chooses to manage the business temporarily, they can still pursue other remedies, such as terminating the franchise agreement, depending on the circumstances.