Does Engineering For Kids guarantee that other franchisees will abide by the Territory Rules?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2.7. You acknowledge that: (a) other Engineering For Kids Businesses will generally operate under restrictions similar to those set out in Sections 1.2.1-1.2.6 (the "Territory Rules"), which means that in some instances, other Engineering For Kids Businesses may solicit participants residing inside your Territory or sponsor advertising that reaches persons in your Territory, or conduct Special Events in your Territory; but that (b) we do not have any obligation to enforce the Territory Rules, nor do we represent or guarantee to you that other Engineering For Kids Businesses will always abide by the Territory Rules, and we will have no liability to you if that occurs.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, Engineering For Kids does not guarantee that other franchisees will abide by the Territory Rules. The document states that while other Engineering For Kids businesses will generally operate under similar territorial restrictions, Engineering For Kids has no obligation to enforce these rules. Furthermore, Engineering For Kids does not represent or guarantee that other franchisees will always follow the Territory Rules and will not be liable if they do not.
This is a significant risk for prospective franchisees. It means that even though a franchisee is granted a specific territory, there is no assurance that other franchisees will not solicit participants or advertise within that territory. This could lead to competition and reduced revenue for the franchisee.
It is important for a prospective Engineering For Kids franchisee to understand this risk and factor it into their decision-making process. They should also consider asking Engineering For Kids about its policies for resolving territorial disputes between franchisees and what recourse they would have if another franchisee violates their territory rules. This lack of guarantee is not uncommon in franchising, but it underscores the importance of thorough due diligence and understanding the competitive landscape.