What happens upon the death or permanent disability of the Engineering For Kids franchisee?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
e order we determine.
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- Management Fee. In order to maintain the continuity of operation of the Franchised Business and to preserve the integrity of the System, you must agree under the Franchise Agreement that if we request it, you will permit us to enter the premises of the Franchised Business and to operate and manage the Franchised Business ("Management" or "Manage") upon the occurrence of any of the following circumstances: (a) if you abandon or fail, or threaten to abandon or fail, to actively operate the Franchised Business for five or more consecutive days unless otherwise authorized by us; (b) if you fail to keep the Franchised Business open as required, or if you intend to close or notify any customers of your intent to close the Franchised Business, (c) if in our reasonable judgment the Franchised Business is in imminent risk of closure due to your financial condition or otherwise; (d) if you fail to complete scheduled Programs or services for clients or participants; (e) if any assets or equipment used in and required for the proper operation of the Franchised Business are repossessed or confiscated by appropriate authorities; and (f) upon the death or permanent disability of you, the Operating Principal, or an Owner of a controlling interest in you resulting, in our opinion, in your diminished capacity to properly operate the Franchised Business. If we chose to exercise this right, we will use reasonable commercial efforts to provide notice to you before exercising our rights to Manage, but we may enter the premises of the Franchised Business and commence Management even if you have not received or responded to a notice. We will have the right to manage the Franchised Business and to be compensated from the Gross Sales of the Franchised Business for all of our costs and expenses in conducting this Management.
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, in the event of the death or permanent disability of the franchisee, Operating Principal, or an Owner of a controlling interest, Engineering For Kids has the right to enter the premises of the Franchised Business and operate and manage the business. This action is contingent on Engineering For Kids's opinion that the event results in a diminished capacity to properly operate the Franchised Business.
Engineering For Kids refers to this process as "Management" or "Manage". The purpose of this intervention is to maintain the continuity of operation and preserve the integrity of the Engineering For Kids system. Engineering For Kids also states that they will be compensated from the Gross Sales of the Franchised Business for all of their costs and expenses in conducting this Management.
This right to manage the Franchised Business is in addition to any other rights Engineering For Kids has under the Franchise Agreement, including the right to terminate the agreement. This means that even if Engineering For Kids chooses to manage the business temporarily, they still retain the option to terminate the franchise agreement if other conditions warrant it.