What happens if Engineering For Kids disapproves a proposed site?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
1. Time to Locate Site:
- 1.1 Within sixty days (60) days after the Effective Date (the "Search Period"), you must acquire or lease/sublease, at your expense, commercial real estate that is properly zoned for the use as an Engineering For Kids Business that you will operate under the Franchise Agreement (the "Business") at a site that we approve as described in this Addendum.
- 1.2 Any sites that you propose for must be within the Territory.
- 1.3 If you used your best efforts, but have not identified a suitable site that we approve by the end of the Search Period, we will have the right to extend the Search Period by up to sixty (60) days. If you fail to acquire or lease a site for the Business within the Search Period, you will be in default under the Franchise Agreement and this Addendum, and we will have the right to terminate the Franchise Agreement and this Addendum pursuant to the terms of Section 15.2 of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, franchisees have a limited time to find a suitable site. Specifically, the franchisee must acquire or lease commercial real estate that is properly zoned for an Engineering For Kids Business within sixty days of the effective date of the agreement. The site must be within the designated territory and approved by Engineering For Kids.
If the franchisee uses their best efforts but cannot find a suitable site that Engineering For Kids approves within the initial 60-day search period, Engineering For Kids has the option to extend the search period by up to another 60 days. However, if the franchisee still fails to secure an approved site within the extended search period, they will be in default of the Franchise Agreement and the Site Selection Addendum.
In the event of a default due to failure to acquire or lease a site, Engineering For Kids has the right to terminate the Franchise Agreement and the Addendum, as per Section 15.2 of the Franchise Agreement. This means the franchisee could lose the opportunity to operate an Engineering For Kids franchise and potentially forfeit any fees paid up to that point. Therefore, finding an acceptable site within the given timeframe is critical for franchisees.