Who is Engineering For Kids requiring the Guarantors to indemnify?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Indemnity
The Guarantors agree to hold harmless and indemnify Franchisor its affiliates, and their respective officers, directors, shareholders, and employees against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees, reasonable costs of investigation, and court costs) resulting from, consisting of, or arising out of or in connection with any failure by the Company to perform any Obligation.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the Guarantors must indemnify Engineering For Kids, its affiliates, and their respective officers, directors, shareholders, and employees. This requirement is detailed within the Personal Guaranty agreement that is part of the franchise agreement.
In practical terms, this means that if the franchisee's company fails to meet its obligations under the Franchise Agreement, the Guarantors are personally responsible for protecting Engineering For Kids from any resulting losses, damages, liabilities, costs, and expenses. This includes legal fees, investigation costs, and court costs.
This indemnity obligation is in effect for the duration of the Franchise Agreement. Even after the agreement terminates, the Guarantors remain liable for any issues that arose before the termination date until those liabilities are fully resolved. This obligation extends to the Guarantor's estate in the event of their death, covering defaults and obligations existing at the time of death. The personal guarantee ensures Engineering For Kids is protected financially if the franchisee's business fails to meet its contractual obligations.