Who determines if a business is considered a 'Large Account' for Engineering For Kids?

According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids determines what constitutes a 'Large Account'. The brand designates locations from which programs may be conducted that have multiple affiliated outlets (such as a chain of children's afterschool care centers, or preschools) based upon their determination that these businesses in multiple locations are deemed 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 designation of 'Large Account' has significant implications for franchisees. Engineering For Kids reserves the right to establish Engineering For Kids businesses at any Large Accounts inside or outside a franchisee's territory, regardless of the proximity to the franchisee's location or the impact on their sales. This means that even if a franchisee is located near a potential 'Large Account,' Engineering For Kids can license another entity to operate there, potentially creating direct competition.

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, the franchisee must service Large Account clients in their Territory on Engineering For Kids' behalf, following the pricing and other terms negotiated with the Large Account client. The franchisee cannot enter into any conflicting relationships with Large Account clients. This could limit a franchisee's ability to set their own prices or customize services for these key clients.

Franchisees should be aware that Engineering For Kids may require additional volume rebates for certain Large Account clients, negotiated on a case-by-case basis. While franchisees have the option to decline participation in a specific Large Account contract if a rebate is required, declining may mean missing out on a significant business opportunity. 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 those clients themselves or authorize others to do so within the franchisee's territory without compensating the franchisee.