How many Engineering For Kids franchised outlets closed during the year 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Number of franchisees sold and opened during the period: | 2 | 1 | 1 |
| Number of franchised outlets sold, | 1 | 0 | 0 |
| but not yet opened during the period: | |||
| Number of franchised outlets in operation during the period: | 23 | 23 | 26 |
| Number of franchised outlets closed during the period: | 2 | 4 | 5 |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, there were 4 franchised outlets that closed during the year 2023. This is a decrease from the 5 closures in 2022, but an increase from the 2 closures in 2024. These figures provide a snapshot of franchise turnover within the Engineering For Kids system over the past three years. Closures can occur for a variety of reasons, including poor performance, disputes with the franchisor, or the franchisee's decision to exit the business.
For a prospective franchisee, these numbers highlight the importance of due diligence and understanding the factors that contribute to franchise success and failure within the Engineering For Kids system. It would be prudent to investigate the reasons behind these closures, if possible, to identify any potential red flags or areas of concern. Understanding the common challenges faced by franchisees can help a new franchisee prepare and mitigate risks.
It's also important to consider these closure rates in the context of the overall size of the Engineering For Kids franchise system. While 4 closures in a year may seem significant, it could represent a small percentage of the total number of operating franchises. A prospective franchisee should compare these figures to industry averages and the performance of other similar franchise systems to assess the relative stability and success of the Engineering For Kids opportunity. Further research and conversations with existing franchisees are essential to gain a comprehensive understanding.