What is Engineering For Kids' obligation when exercising the right to manage the Franchised Business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Our right to Manage the Franchised Business will be in addition to, and not instead of, all other rights available to us under the Franchise Agreement (including the right, if applicable, to terminate the Franchise Agreement).
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, Engineering For Kids has the right to manage a franchised business under certain circumstances, such as abandonment by the franchisee or imminent risk of closure. If Engineering For Kids chooses to exercise this right, they must make reasonable commercial efforts to notify the franchisee before commencing management. However, Engineering For Kids can enter the premises and begin management even if the franchisee has not received or responded to the notice.
Engineering For Kids is entitled to compensation from the Gross Sales of the Franchised Business to cover all costs and expenses incurred during the management period. This compensation will come directly from the revenue generated by the franchise during the time that Engineering For Kids is managing it.
It's important to note that Engineering For Kids' right to manage the Franchised Business is in addition to any other rights they have under the Franchise Agreement, including the right to terminate the agreement. This means that even if Engineering For Kids takes over management, they can still pursue other remedies or terminate the agreement if the franchisee is in breach.