Does the FDD define what constitutes a 'Large Account' for Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
"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. Our negotiation of certain Large Accounts, including rates and services to be performed, enhances the potential value of the System and inures to your benefit as well as to our benefit and that of other Engineering For Kids Businesses. Accordingly, we reserve the right to administer a Large Accounts program for the "Engineering For Kids" business. If we establish a Large Accounts program, you must service Large Account customers in your Territory on our behalf, according to the pricing and other terms that we negotiate with the Large Account customer. You may not enter into any relationship with a Large Account customer that we deem to conflict with the customer's Large Account arrangement with us. Certain Large Account customers may require that we provide additional volume rebates, which we will negotiate with the customer on a case-by-case basis. If an additional rebate is required, we will notify you before signing the Large Account contract, and you will have the option not to participate in that Large Account contract. We will not pay you for your services to a Large Account customer until you submit the appropriate documentation.
You may terminate your participation in the Large Account program at any time by giving us at least 30 days' prior written notice. If you terminate your participation in the Large Account program, or if you fail to satisfy the conditions and obligations of any Large Account agreement, we have the right to service or authorize others to service Large Account customers within your Territory without any compensation to you. This right is an exception to your territorial protection described above. We have no obligation to readmit you into the Large Account program or to transfer any Large Account customer to you if you are subsequently willing and able to provide service within your Territory.
We are not required to pay you if we exercise any of the rights specified above inside your Territory.
Source: Item 12 — TERRITORY (FDD pages 36–41)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 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 deemed of strategic importance to them.
Engineering For Kids reserves the right to administer a Large Accounts program. If Engineering For Kids establishes a Large Accounts program, franchisees must service Large Account customers in their territory according to the pricing and other terms that Engineering For Kids negotiates with the Large Account customer. Franchisees may not enter into any relationship with a Large Account customer that Engineering For Kids deems to conflict with the customer's Large Account arrangement with them.
Certain Large Account customers may require additional volume rebates, which Engineering For Kids will negotiate with the customer on a case-by-case basis. If an additional rebate is required, Engineering For Kids will notify the franchisee before signing the Large Account contract, and the franchisee will have the option not to participate in that Large Account contract. Engineering For Kids will not pay franchisees for their services to a Large Account customer until they submit the appropriate documentation. Franchisees can terminate their participation in the Large Account program at any time by giving Engineering For Kids at least 30 days' prior written notice. If a franchisee terminates their participation or fails to satisfy the conditions of any Large Account agreement, Engineering For Kids has the right to service or authorize others to service Large Account customers within the franchisee's territory without any compensation to the franchisee.