What power must the Operating Principal have in dealings with the Engineering For Kids franchisor?
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 Franchise Disclosure Document, 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 Engineering For Kids franchise.
Furthermore, the Operating Principal must complete the franchisor's training program. This ensures they are well-versed in the Engineering For Kids system and standards. Critically, the Operating Principal must possess the authority over all business decisions related to the franchised business.
Most importantly, the Operating Principal must have the power to legally bind the franchisee in all dealings with Engineering For Kids. This means they can enter into agreements and make commitments on behalf of the franchise. The Operating Principal is also required to be an equity holder in the company, demonstrating a vested interest in the franchise's success. The franchisee cannot change the Operating Principal without obtaining prior approval from Engineering For Kids.