factual

What happens if an Engineering For Kids franchisee dies or becomes disabled?

Engineering_For_Kids Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Summary *
Franchise or other Agreement
c Requirements for you to renew or extend 2.2 Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, not in material default, release, sign then-current form of Franchise Agreement (which may contain materially different terms and conditions than the original agreement), pay a renewal fee, and others; please refer to §§ 2.2.1 –2.2.7 in the Franchise Agreement.
d Termination by you Not applicable Subject to state law, you may not terminate the Franchise Agreement.
e Termination by us Not applicable
without cause
f Termination by us with cause 15 Default under agreement, bankruptcy, abandonment, and other grounds; see § 15 of the Franchise Agreement. (Under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing.)
g “Cause” defined – 15.3 All other defaults not specified in §§ 15.1 and
curable defaults 15.2 of the Franchise Agreement
h “Cause” defined – non-curable defaults 15.1 and 15.2 Bankruptcy, abandonment, conviction of felony, and others (but under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing).
i Your obligations on termination/ nonrenewal 16 Immediately stop operating the Franchised Business, stop all use of our trademarks, pay all amounts due, pay liquidated damages if termination was due to your default, and others; see §§ 16.1.1 – 16.1.4 of the Franchise Agreement.
j Assignment of 13 There are no limits on our right to assign the
contract by us Franchise Agreement.
k “Transfer” by you – 14.1 Includes transfer of any interest.
defined
l Our approval of 14.2 We have the right to approve transfers.
transfer by you
m Conditions for our approval of transfer 14.3 Release, signature of new agreement, payment of transfer fee, meet then-current qualifications to our satisfaction, successfully complete training requirements and pay training fee, arrange to upgrade and conform Franchised
Provision Section in Franchise or other Agreement Summary * Business to then-current standards and specifications, sign our then-current form of personal guarantee; transferee must not be in default, and prices and other proposed terms of transfer must not have effect of negatively impacting future viability of Franchised Business.
n Our right of first 14.9 We can match any offer.
refusal to acquire
your business
o Our option to Not applicable
purchase your
business
p Your death or disability 14.7 If you die or become incapacitated, your executor or representative must apply to us in writing for approval within three months after death or the onset of disability.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 45–48)

What This Means (2025 FDD)

According to the 2025 Engineering For Kids Franchise Disclosure Document, the franchise agreement addresses the scenario in which a franchisee dies or becomes incapacitated. Specifically, if an Engineering For Kids franchisee dies or becomes incapacitated, their executor or representative must apply in writing to Engineering For Kids for approval within three months of the death or the onset of the disability.

This requirement ensures that Engineering For Kids maintains control over who operates the franchise, even in unforeseen circumstances. The three-month window provides a reasonable timeframe for the franchisee's estate to organize and decide on the future of the franchise.

It is important for prospective Engineering For Kids franchisees to understand this provision, as it dictates how their business will be handled in the event of death or disability. Franchisees should consult with legal and financial advisors to plan for such contingencies and ensure their estate can comply with these requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.