What must the Engineering For Kids franchisee do to ensure employees render knowledgeable service?

em from time to time.

We offer Engineering For Kids Businesses under our "Learning Center Based Business" format. Each site must meet our standards and specifications (each a "Third Party Site"). Third Party Sites may include facilities, such as community centers and parks and recreation centers, where the operator rents a portion of the facility for specific schedule of days or time slots, or other facilities, such as afterschool care centers and schools, at which the operator conducts Programs on a scheduled basis as an independent service provider. In addition to receiving a license from us to operate at Third Parties Sites, the operator establishes an instruction facility and office at a location that will serve as the operator's permanent base of operations, will be devoted entirely to the operation of an Engineering For Kids Business, and will bear exterior "Engineering For Kids" signage (a "EFK Center Location"). A franchisee may not establish an EFK Center Location unless the franchisee obtains our approval and completes the EFK Center Location Addendum to the Franchise Agreement. Unless otherwise indicated in this disclosure document, the term "Authorized Location" will refer to Third Party Sites and EFK Center Locations. Engineering For Kids Businesses may also offer and provide Programs and sell Authorized Products at the homes (or other facilities) of their customers (or persons who are referred by customers) Programs at Authorized Locations, so long as we have approved those Programs and Authorized Products for sale and use at children's parties, holiday and other celebratory events conducted outside of the Authorized Location(s) ("Special Events Services").

Our system includes the following products or services that we provide to our franchisees: utilization of the core class curriculum, availability to purchase optional class curriculum, availability of products and supplies, training and supervision. If you acquire a franchise, you must operate your Business and provide all services and products according to our business formats, methods, procedures, designs, layouts, standards, and specifications.

We identify the businesses operating under the System by means of the "Engineering For Kids" name and certain other trademarks, service marks, trade names, signs, logos, and other indicia of origin (collectively, the "Proprietary Marks"). We may designate other trade names, service marks, and trademarks as Proprietary Marks.

Unless otherwise defined in this disclosure document, all initially capitalized terms appearing in this disclosure document have the same meaning as set out in the attached Franchise Agreement, which is included as Exhibit A.

The Market and Competition

Your Franchised Business will offer products and services to the general public throughout the year and compete with other facilities tutoring and teaching math, science, technology and engineering educational activities and related educational enrichment programs. The market for your type of products and services generally is developed and very competitive. Despite this competition, we believe that Engineering For Kids Business appeal to consumers because of product and service quality. Because sales of coaching, teaching and tutoring service in Math, Science, Technology and Engineering Educational Activities generally increase when participants

are not in school, i.e. during holiday breaks or the summer months when school is not in session, therefore your sales volume may be seasonal even though the businesses operate on a yearround basis.

You will compete with other coaching, teaching or tutoring services and or facilities coaching, teaching or tutoring in Educational Activities, which may be franchised by other companies (which may be operated as part of regional or national brands) or may be non-chain independent operators.

Specific Industry Regulations

You are responsible for operating in full compliance with all laws that apply to the industry in which Engineering For Kids Businesses operate, including all state and local laws and regulations. This includes all laws and regulations that apply generally to all coaching, teaching or tutoring youth in math, science, technology and engineering educational activities businesses. You should investigate these laws and regulations. You must secure and maintain all necessary licenses, permits and certificates for the operation of the Franchised Business, as well as any other licenses applicable to the persons that you employ.

You must also comply with laws and regulations that are applicable to businesses generally, such as data collection and use, workers' compensation, OSHA, and Americans with Disabilities Act requirements; unemployment insurance; withholding and payment of Federal and State income taxes and Social Security taxes; and sales, use, and property taxes. The laws and rules that affect the operations of Engineering for Businesses may vary from location to location and over time.

ITEM 2 BUSINESS EXPERIENCE

Chairman – Darryl Simsovic

Darryl Simsovic was appointed as our Chairman when we were formed in October 2020. Mr. Simsovic has also served as Chief Executive Officer of SIE USA since February 2019, and as Director and Chief Executive Officer to SIE in Richmond Hill, Ontario since January 2019, and in the same positions with its predecessor entities since October 2017. He has served as Director and as Chief Executive Officer / Managing Director of LLI in Richmond Hill, Ontario since December 2015. He has served as Director and President to both LHI and Integrated Training and Education Management Corporation Inc. in Toronto, Ontario since November 2018. Mr. Simsovic has served as Director and Chief Executive Officer of LaunchLife USA since December 2016, and has also served as its President since November 2018. He has served as President and Chief Executive Office of Academy of Learning USA, LLC since February 2019. Mr. Simsovic has served on the Board of Directors for Pitman Training Group Limited, Pitman Education and Training Limited, Pitman Training Limited, in Warwickshire, England since November 2018. He has served on the Board of Directors for Academy of Learning Inc. since June 2017.

Chief Executive Officer– Douglas Simsovic

Douglas Simsovic was appointed as our Chief Executive Officer when we were formed in October 2020. Mr. Simsovic has also served as President of LLI since June 2019 and as President of SIE since April 2020, in Richmond Hill, Ontario.

Managing Director - David Riker

David Riker has been our Managing Director since January 2022 and EFKI. From January 2020 to January of 2022, he owned and operated DR Consulting located in Sussex, NJ.

Director, Franchise Development – John Rogers

John Rogers has been our Senior Director, Franchise Development since September 2024. He was a Director of Franchising/Corporate Sales at eSupply Canada in Toronto, Ontario from November 2022 to July 2024. From March 2021 to February 2023, Mr. Rogers was Director of Franchise Development for TaxAssist Accountants Canada in Toronto, Ontario. Mr. Rogers was a Business Development Manager from February 2018 to March 2021 for Tirecraft, Inc. in Ingersoll, Ontario.

ITEM 3 LITIGATION

No litigation is required to be disclosed in this Item.

ITEM 4 BANKRUPTCY

No bankruptcy information is required to be disclosed in this Item.

ITEM 5 INITIAL FEES

Initial Franchise Fee

When you sign your Franchise Agreement, you will pay us an initial franchise fee ("Initial Franchise Fee"). The Initial Franchise Fee is currently $30,000 unless you qualify for one of the 10% discounts described below.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)