Does Engineering For Kids have a right of first refusal to acquire an Engineering For Kids franchisee's business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or other Agreement | Summary * | |
|---|---|---|---|
| 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' 2025 Franchise Disclosure Document, Engineering For Kids retains the right of first refusal should a franchisee decide to sell their business. This means that if a franchisee receives an offer to purchase their Engineering For Kids franchise, they must first present that offer to Engineering For Kids, giving the franchisor the option to buy the business on the same terms.
This right of first refusal allows Engineering For Kids to maintain control over who enters the franchise system and to ensure that any transfer aligns with their strategic goals. For a franchisee, this could potentially limit the pool of potential buyers, as any outside offer is contingent on Engineering For Kids declining to exercise their right.
According to the FDD, the specific clause outlining Engineering For Kids' right of first refusal is found in Section 14.9 of the Franchise Agreement. Prospective franchisees should carefully review this section of the agreement to fully understand the implications of this right, including any conditions or procedures that must be followed when a transfer is proposed.