How can an Engineering For Kids franchisee terminate their participation in the Large Account program?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.9.2. 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 and/or authorize others to service Large Account clients inside your Territory without any compensation to you. This right is an exception to your territorial protection. We have no obligation to readmit you into the Large Account program or to transfer any Large Account client to you if you are subsequently willing and able to provide service inside your Territory.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, a franchisee can terminate their participation in the Large Account program by providing Engineering For Kids with written notice at least 30 days in advance. This allows franchisees to opt out of servicing Large Account clients if they choose to do so. However, this decision has consequences.
If a franchisee terminates their participation or fails to meet the obligations of any Large Account agreement, Engineering For Kids has the right to service or authorize others to service Large Account clients within the franchisee's territory. This is without any compensation to the franchisee and acts as an exception to the franchisee's territorial protection. This means that Engineering For Kids can directly compete within the franchisee's territory for these specific Large Account clients.
Furthermore, Engineering For Kids is under no obligation to readmit the franchisee into the Large Account program or transfer any Large Account client back to the franchisee, even if the franchisee later becomes willing and able to provide service within their territory. This creates a risk that a franchisee who opts out of the Large Account program may permanently lose the opportunity to serve those clients, even if their circumstances change.