What is the definition of a 'Period' for an Engineering For Kids franchise, and can it be changed?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.6. You underreport Gross Sales by more than 2% on three occasions or more in any eighteen-month period or by 5% or more for any period of one month or greater.
6.1. Compliance with Standards and System Changes
You agree to comply with all mandatory standards, specifications and operating procedures set forth from time to time in our Manual. You acknowledge that the services and operation of your Franchised Business, accounting practices, record keeping and reporting practices, and software are important to us and our other franchisees. However, you acknowledge that we have the right to vary our standards and specifications, in our reasonable judgment, to accommodate circumstances of individual franchisees. We have the right from time to time to change or modify the System, including modifications to the Manual, the Programs, Proprietary Materials, curriculum, approved suppliers, the required equipment, the signage, and other aspects of the Franchised Business, the adoption of new administrative forms and methods of reporting and payment of any monies owed to us (including electronic means of reporting and payment). You agree to accept and implement any such changes or modifications to the System as if they were a part of the System at the time this Agreement was signed, and you will make such expenditures as the changes or modifications in the System may reasonably require. However, if any discontinued portion of the System, could pose a hazard to the public or prove detrimental to the System, you must cease selling that item or offering that service immediately.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, a 'period' is referenced in the context of underreporting gross sales. Specifically, if an Engineering For Kids franchisee underreports gross sales by more than 2% on three or more occasions in any eighteen-month period, or by 5% or more for any period of one month or greater, it can be considered a breach of the franchise agreement.
Engineering For Kids has the right to modify the System, including modifications to the Manual, the Programs, Proprietary Materials, curriculum, approved suppliers, the required equipment, the signage, and other aspects of the Franchised Business, the adoption of new administrative forms and methods of reporting and payment of any monies owed to us (including electronic means of reporting and payment).
While the FDD specifies Engineering For Kids's right to modify the System, it does not explicitly state whether the definition of 'period' can be changed. Therefore, it is important for a prospective franchisee to seek clarification from Engineering For Kids regarding the potential for changes to the definition of 'period' and the implications of such changes.