What releases must be signed and delivered to Engineering For Kids during a transfer?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is our current general release language that we expect to include in a release that a franchisee, developer, and/or transferor may sign as part of a renewal or an approved transfer. We may, in our sole discretion, periodically modify the release.
Franchisee, its officers and directors, its owners, and their respective agents, heirs, administrators, successors, and assigns (the "Franchisee Group"), hereby forever release and discharge, and forever hold harmless Engineering for Kids International, LLC, its current and former affiliates and predecessors, and their respective shareholders, partners, members, directors, officers, agents, representatives, heirs, administrators, successors, and assigns (the "Franchisor Group"), from any and all claims, demands, debts, liabilities, actions or causes of action, costs, agreements, promises, and expenses of every kind and nature, at law or in equity, whether known or unknown, foreseen and unforeseen, liquidated or unliquidated, which the Franchisee Group and/or its owners had, have, or may have against any member of the Franchisor Group, including, without limitation, any claims or causes of action arising from, in connection with or in any way related or pertaining, directly or indirectly, to the Franchise Agreement, the relationship created by the Franchise Agreement, or the development, ownership, or operation of an Engineering For Kids Business. The Franchisee Group further indemnifies and holds the Franchisor Group harmless against, and agrees to reimburse them for any loss, liability, expense, or damages (actual or consequential) including, without limitation, reasonable attorneys', accountants', and expert witness fees, costs of investigation and proof of facts, court costs, and other litigation and travel and living expenses, which any member of the Franchisor Group may suffer with respect to any claims or causes of action which any customer, creditor, or other third party now has, ever had, or hereafter would or could have, as a result of, arising from, or under the Franchise Agreement or the Engineering For Kids Business. The Franchisee Group and its owners represent and warrant that they have not made an assignment or any other transfer of any interest in the claims, causes of action, suits, debts, agreements, or promises described herein.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, in the context of a renewal of the franchise agreement or an approved transfer, Engineering For Kids expects a franchisee, developer, and/or transferor to sign a general release. This release involves the Franchisee Group (including officers, directors, owners, agents, heirs, administrators, successors, and assigns) releasing and discharging the Franchisor Group (Engineering for Kids International, LLC, its affiliates, predecessors, shareholders, partners, members, directors, officers, agents, representatives, heirs, administrators, successors, and assigns) from all claims, demands, debts, liabilities, actions, costs, agreements, promises, and expenses. This covers all possible claims, whether known or unknown, at law or in equity, related to the Franchise Agreement or the operation of the Engineering For Kids Business.
Furthermore, the Franchisee Group agrees to indemnify and hold the Franchisor Group harmless from any losses, liabilities, expenses, or damages, including attorney's fees, arising from claims by customers, creditors, or other third parties related to the Franchise Agreement or the Engineering For Kids Business. The Franchisee Group also warrants that they have not assigned or transferred any interest in the claims described in the release.
This requirement ensures that Engineering For Kids is protected from potential future legal claims arising from the franchisee's prior operation of the business. The franchisor retains the discretion to modify the release periodically, so it is important for prospective franchisees to review the most current version during the transfer process.