Must the proposed buyer provide Engineering For Kids with a copy of the purchase agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
cluding to cooperate with us in obtaining the information that we need in order to review and consider the qualifications of a prospective transferee and to provide us with a copy of the purchase agreement with the buyer.
14.4. Transfer Fee
For a proposed Transfer of the Franchised Business or this Agreement (or, if you are a corporation or other entity, a Transfer of ownership interests that would result in a change of control of your entity), you must pay to us a Transfer fee in the amount of Five Thousand Dollars ($5,000), unless the Transfer qualifies for the reduced fee for a partial interest Transfer under Section 14.5 below.
14.5. Transfer of Partial Ownership Interest
For any proposal to admit a new Owner, to remove an existing Owner, or to change the distribution of ownership shown on the cover page, or for any other transaction that amounts to the Transfer of a partial interest in the Franchised Business, and provided that all such changes would not result in a change of control of your entity, you must give us advance notice and submit a copy of all proposed contracts and other information concerning the Transfer that we may request. Provided that you provide us with all information and documents that we request in co
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, if a franchisee proposes to transfer a partial interest in their franchised business, they must provide Engineering For Kids with advance notice and submit a copy of all proposed contracts and other information concerning the transfer that Engineering For Kids may request. This requirement is applicable as long as the changes would not result in a change of control of the franchisee's entity.
Specifically, the franchisee must provide all information and documents requested by Engineering For Kids in connection with the partial transfer. After receiving all the requested information, Engineering For Kids will have a reasonable time (not less than 30 days) to evaluate the proposed transfer. The franchisee must also ensure that the conditions outlined in Sections 14.3.2(a), 14.3.3, 14.3.4, 14.3.5, and 8.4 of the franchise agreement are met in connection with any such transfer.
Engineering For Kids may withhold consent on any reasonable grounds or grant consent subject to reasonable conditions. Additionally, any proposed new owner must submit a personal application and execute a personal guarantee in the same form signed by the original owners. This ensures that Engineering For Kids maintains control over who becomes involved in the franchise and that the new owner is fully committed to the business.