Must the Operating Principal be an equity holder in the company for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, partnership or LLC, you must appoint an individual owner as your Operating Principal. The Operating Principal must provide his or her full-time attention to the dayto-day supervision and operation of the Franchised Business, complete our training program, must have authority over all business decisions related to the Franchised Business, and must have the power to bind you in all dealings with us. The Operating Principal must be an equity holder in the company. You may not change the Operating Principal without our prior approval.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, if the franchisee is a corporation, partnership, or LLC, they must appoint an individual owner as the Operating Principal. This Operating Principal is required to dedicate their full-time attention to the daily supervision and operation of the franchised business.
The Operating Principal must complete the Engineering For Kids training program, possess the authority to make all business decisions related to the franchised business, and have the power to legally bind the franchisee in all dealings with Engineering For Kids. Critically, the Operating Principal must be an equity holder in the company. The franchisee cannot change the Operating Principal without prior approval from Engineering For Kids.
This requirement ensures that the individual most involved in the day-to-day operations has a vested interest in the success of the Engineering For Kids franchise and is fully committed to upholding the standards and practices of the brand. It also provides Engineering For Kids with a clear point of contact who has both the authority and the responsibility to manage the business effectively.