Where are Engineering For Kids franchisees authorized to offer and provide programs?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
ITEM 12 TERRITORY
Grant of Rights and Definition of Territory
Under the Franchise Agreement, we will grant you the right and license to operate your Franchised Business within a Territory. The Territories will vary in size and dimension based on local factors, but a "standard" Territory will generally be determined as a geographic area containing approximately 100 schools with grades including some or all of kindergarten through eighth grade.
You will offer and provide Programs at the Authorized Locations the Programs and sell the Authorized Products, and such other and services and products that we may approve from time to time, to customers of the Franchised Business attending Programs at the Authorized Locations (regardless of where those customers live). You may also offer and provide Special Event Services Programs at the homes (or other facilities) of customers who attend Programs at your Authorized Locations, or who are referred to you by customers who attend Programs at your Authorized Locations. As described in Item 1, Special Event Services are those Programs and
Authorized Products that we approve for sale and use at children's parties, holiday and other celebratory events conducted outside of the Authorized Locations.
You may not, unless you have our prior written approval, engage in any other type of sale, including, selling or distributing products or services at wholesale or to third parties for resale, or using alternate channels of distribution, such as the Internet, catalog sales, or telemarketing.
Territory Rules.
You will conduct Programs, advertise and market the services of the Franchised Business, and directly solicit participants, inside (but only inside) your Territory (subject to our right to approve all advertising and marketing materials). "Direct solicitation" includes solicitation in person, by telephone, by mail, by e-mail or other electronic means, advertising, marketing, and by distribution of brochures, business cards or other materials.
You may not directly solicit participants located, and/or conduct Programs, in the territory of another Engineering For Kids Business (an "Assigned Area"). You may accept participants from an Assigned Area into Programs that you operate inside your Territory if you did not directly solicit those participants. If you receive an inquiry to conduct a Program at a location in an Assigned Area, you must refer that Program to the Engineering For Kids Business operating in that Assigned Area.
You may directly solicit participants from, and conduct Programs in, areas located outside the Territory if those participants and/or Programs are not located in an Assigned Area (an "Open Area") and the following conditions are met. You may only solicit participants from, and conduct Programs in, Open Areas located within 25 miles of your Territory. If you are conducting a Program in an Open Area (an "Outside Program") and that area later becomes an Assigned Area, then you must immediately give control of the Outside Program to the Engineering For Kids Business franchisee for that Assigned Area. Once an Open Area becomes an Assigned Area, you may no longer directly solicit participants from, or conduct any Programs in, the Assigned Area.
If any of your advertising within the Territory is in media that will or may reach a significant number of persons outside of the Territory, you must notify us in advance and obtain our consent. We may periodically establish rules and policies regarding this advertising. Additionally, we may periodically establish rules, guidelines and policies regarding you and other franchisee participation in other promotional activities and events (including without limitation, camp fairs and school fairs) that will or are reasonably expected to serve or draw potential customers and/or Third-Party Sites located in geographic areas serviced by more than one Engineering For Kids Business, and for use in connection with the Virtual Programs.
Other Engineering For Kids Businesses will operate under franchise agreements with restrictions similar to those above (the "Territory Rules"), which means that in some instances other Engineering For Kids Businesses may perform services in your Territory or sponsor advertising which reaches persons in your Territory. Although we do not intend to knowingly permit violations of the Territory Rules, we are not required to take action against franchisees for violations of the Territory Rules.
Territorial Rights and Rights We Reserve
You will not receive an "exclusive" Territory. You may face competition from outlets that we own or from other channels of distribution or competitive brands that we control.
We do, however, provide you with the territorial rights and protections within your Territory described in this paragraph. During the term of the Franchise Agreement, and except as otherwise provided in that agreement, we will not (a) operate (or grant a franchise to anyone else to operate) an Engineering For Kids Business that is physically located within the same Territory that we granted to you; and/or (b) grant an Engineering For Kids franchise to any other party that is for the same territory that we have assigned to you as your Territory under this Agreement.
Except for those rights and territorial protection granted to you (described in the preceding paragraph), we (and our affiliates) retain all other rights that we do not expressly grant to you in the Franchise Agreement. As a result, we will have the right (among other things), on any terms and conditions that we deem advisable, and without granting you any rights, to conduct any business activities, under any name, in any geographic area (including within the Territory), and at any location, regardless of the proximity to or effect upon your Engineering For Kids Business. For example, we have the right to:
Continuation of your franchise or territorial rights does not depend on your achieving a certain sales volume, market penetration, or other contingency, other than satisfying the "Minimum Performance Standards" described below and remaining in compliance with the Franchise Agreement.
Large Accounts Program
"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.
Minimum Performance Standards
The rights to operate under the Franchise Agreement, including the territorial rights described above, are conditioned upon your complying with the Franchise Agreement, including that your Franchised Business must generate a minimum level of Gross Sales on an annual basis for each Operating Year, in the amounts described in the Franchise Agreement (the "Minimum Performance Standards"). For this purpose, the first Operating Year will begin on the first day of the Period for which you must submit your first Royalty payment and Sales Report, and will
continue until the one-year anniversary (of the date when that Operating Year started). The current Minimum Performance Standards are:
Source: Item 12 — TERRITORY (FDD pages 36–41)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, franchisees are granted the right to operate their franchised business within a defined territory. A standard territory typically encompasses a geographic area containing approximately 100 schools with grades ranging from kindergarten through eighth grade.
Franchisees are authorized to offer and provide programs at authorized locations within their territory. They can also sell approved products and services to customers attending these programs, regardless of where the customers reside. Additionally, franchisees may offer Special Event Services programs at customers' homes or other facilities, particularly for parties, holidays, and other celebratory events, provided these customers attend programs at the franchisee's authorized locations or are referred by existing customers.
However, franchisees must conduct programs and directly solicit participants primarily within their assigned territory. Direct solicitation includes various methods such as in-person contact, telephone, mail, email, advertising, and distributing marketing materials. Franchisees are generally restricted from directly soliciting participants or conducting programs in another Engineering For Kids business's assigned area, although they can accept participants from other areas if those participants were not directly solicited.
Franchisees may solicit participants and conduct programs in open areas (areas not assigned to another franchisee) within 25 miles of their territory, but must relinquish control of any programs in these areas if they later become assigned to another franchisee. Engineering For Kids also reserves the right to administer a Large Accounts program, requiring franchisees to service large account customers within their territory according to the terms negotiated by Engineering For Kids. Franchisees must also adhere to minimum performance standards to maintain their territorial rights, and failure to do so may result in a reduction of territory size or the introduction of other franchisees into their territory.