Does Engineering For Kids have the obligation to cure any deficiency under the lease?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1 Require the lessor to provide us with a copy of any written notice of deficiency under the lease sent to you, at the same time as notice is given to you (as the lessee under the lease), and which grants to us the right (but not obligation) to cure any deficiency by you under the lease within fifteen (15) business days after the expiration of the period in which you had to cure any such default should you fail to do so;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids is not obligated to cure any deficiency under the lease. However, the lease agreement must include a provision that the lessor provides Engineering For Kids with a copy of any written notice of deficiency sent to the franchisee. This notice must be sent at the same time it is given to the franchisee. Engineering For Kids then has the right, but not the obligation, to cure any deficiency within fifteen business days after the period in which the franchisee had to cure the default.
This arrangement allows Engineering For Kids to protect its brand and the operation of the Engineering For Kids Business at the location. By receiving notice of any default, Engineering For Kids has the option to step in and resolve the issue, ensuring the business remains operational and compliant with the franchise agreement. However, the franchisee remains primarily responsible for fulfilling the terms of their lease agreement.
This type of clause is relatively common in franchise agreements, as it allows the franchisor to maintain some control over the physical location of the business without assuming direct liability for the lease. Prospective Engineering For Kids franchisees should carefully review the lease agreement and understand their obligations to the lessor, as any default under the lease can also constitute a default under the Franchise Agreement.