Does Engineering For Kids have the right to approve transfers of the franchise by the franchisee?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other Agreement | Summary * | ||
|---|---|---|---|---|
| l | Our approval of | 14.2 | We have the right to approve transfers. | |
| transfer by you | ||||
| m Conditions for our approval of transfer | 14.3 | Release, signature of new agreement, payment of transfer fee, meet then-current qualifications to our satisfaction, successfully complete training requirements and pay training fee, arrange to upgrade and conform Franchised | ||
| Provision | Section in Franchise or other Agreement | Summary * Business to then-current standards and specifications, sign our then-current form of personal guarantee; transferee must not be in default, and prices and other proposed terms of transfer must not have effect of negatively impacting future viability of Franchised Business. | ||
| n Our right of first | 14.9 | We can match any offer. | ||
| refusal to acquire | ||||
| your business |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 45–48)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, Engineering For Kids retains the right to approve any transfer of the franchise by the franchisee. This is a common practice in franchising, as it allows the franchisor to maintain control over who operates under their brand name.
The FDD outlines several conditions that Engineering For Kids may impose for approving a transfer. These include requiring a release from the current franchisee, the signature of a new franchise agreement by the transferee, payment of a transfer fee, and ensuring the transferee meets the then-current qualifications for franchisees. The transferee must also successfully complete training and pay any associated training fees. Furthermore, the franchised business may need to be upgraded to meet current standards, and the transferee may be required to sign a personal guarantee.
Engineering For Kids will also assess whether the transferee is in default of any agreements and ensure that the terms of the transfer do not negatively impact the future viability of the franchised business. Additionally, Engineering For Kids has the right of first refusal to acquire the business, meaning they can match any offer made by a potential buyer. These provisions are designed to protect the Engineering For Kids brand and ensure that any new franchisee is well-qualified and committed to maintaining the standards of the franchise system.