What is Engineering For Kids' rationale for administering a Large Accounts program?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.9.1. You acknowledge that our negotiation of certain select and/or strategic Large Accounts, including the Programs to be offered and the rates and services to be performed, enhances the potential value of the System and inures to your benefit as well as to our benefit and that of other Engineering For Kids Business franchisees. Accordingly, we reserve the right to administer a Large Accounts program for the System. If we establish a Large Account program, you must service Large Account clients in your Territory on our behalf, in accordance with the pricing and other terms that we negotiate with the Large Account client. You may not enter into any relationship with a Large Account client that we deem to conflict with the client's Large Account arrangement with us. Certain Large Account clients may require that we provide additional volume rebates, which we will negotiate with the client on a caseby-case basis. If an additional rebate is required, we will notify you before signing the Large Account contract, and you will have the option not to participate in that Large Account contract. We will not pay you for your services to a Large Account client until you submit the appropriate documentation.
- 6.9.2. You may terminate your participation in the Large Account program at any time by giving us at least 30 days' prior written notice. If you terminate your participation in the Large Account program, or if you fail to satisfy the conditions and obligations of any Large Account agreement, we have the right to service and/or authorize others to service Large Account clients inside your Territory without any compensation to you. This right is an exception to your territorial protection. We have no obligation to readmit you into the Large Account program or to transfer any Large Account client to you if you are subsequently willing and able to provide service inside your Territory.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the rationale behind administering a Large Accounts program is to enhance the potential value of the Engineering For Kids system. This includes benefiting both the franchisor, Engineering For Kids, and its franchisees. Engineering For Kids believes that negotiating terms with select and strategic Large Accounts, including program offerings, rates, and services, increases the overall value of the system.
In practice, this means that Engineering For Kids reserves the right to manage relationships with Large Account clients, which are defined as locations with multiple affiliated outlets deemed strategically important. If Engineering For Kids establishes a Large Account program, franchisees may be required to service these clients within their territory according to the terms negotiated by Engineering For Kids. Franchisees are prohibited from entering into conflicting relationships with these Large Account clients.
However, franchisees have the option to decline participation in specific Large Account contracts if additional volume rebates are required by the client. Franchisees can also terminate their participation in the Large Account program with 30 days' written notice. If a franchisee opts out or fails to meet the obligations of a Large Account agreement, Engineering For Kids reserves the right to service the client directly or authorize others to do so, even within the franchisee's territory, without compensating the franchisee. This represents an exception to the franchisee's territorial protection.