Where are the 'Minimum Performance Standards' for Engineering For Kids described in the FDD?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
of the rights specified above inside your Territory.
Minimum Performance Standards
The rights to operate under the Franchise Agreement, including the territorial rights described above, are conditioned upon your complying with the Franchise Agreement, including that your Franchised Business must generate a minimum level of Gross Sales on an annual basis for each Operating Year, in the amounts described in the Franchise Agreement (the "Minimum Performance Standards"). For this purpose, the first Operating Year will begin on the first day of the Period for which you must submit your first Royalty payment and Sales Report, and will
continue until the one-year anniversary (of the date when that Operating Year started). The current Minimum Performance Standards are:
| Operating Year* | Minimum Annual Gross Sales at the End of Operating Year* |
|---|
Source: Item 12 — TERRITORY (FDD pages 36–41)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the 'Minimum Performance Standards' are described in Item 12, which discusses territory. The document specifies that the rights to operate under the Franchise Agreement, including territorial rights, are contingent upon compliance with the agreement, including generating a minimum level of Gross Sales annually for each Operating Year. The amounts for these Minimum Performance Standards are detailed in the Franchise Agreement. The first Operating Year begins on the first day of the period for which the franchisee must submit their first Royalty payment and Sales Report, continuing until the one-year anniversary of that date.
The current Minimum Performance Standards are further detailed in a table. For Year 1, there is no minimum annual gross sales requirement. In Year 2, the minimum annual gross sales required is $50,000. By Year 3, the minimum annual gross sales must reach $75,000.
If a franchisee fails to meet the Minimum Performance Standards and does not rectify the deficiencies, Engineering For Kids has the option to take several actions. These actions include reducing the size of the franchisee's territory, with a corresponding reduction in the Minimum Performance Standard, permitting other franchisees or the franchisor to provide services within the franchisee's territory, and establishing or licensing others to establish an Engineering For Kids Business in the franchisee's territory. This highlights the importance of meeting the specified sales targets to maintain the original scope and exclusivity of the franchise territory.