What is the term length for the Engineering For Kids franchise agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement expires five (5) years from the Agreement Date, unless it is terminated sooner as provided in other sections of this Agreement.
When this Agreement expires, you will have the option to continue the franchise relationship with us for two (2) additional terms of five (5) years each, unless: (a) we have announced a decision to stop franchising the Engineering For Kids concept; or (b) we decide to withdraw the Engineering For Kids program concept from the geographic market in which your Territory is located. You must satisfy all of the following conditions in order to continue your franchise relationship:
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is five years from the agreement date. After the initial term, franchisees have the option to continue the franchise relationship for two additional terms, each lasting five years.
However, this option is contingent upon Engineering For Kids not deciding to discontinue franchising the concept or withdraw the program from the franchisee's geographic market. To qualify for renewal, franchisees must provide written notice of their intent to renew between six and twelve months before the agreement expires. They must also sign the current standard franchise agreement, which may have materially different terms and fees compared to the original agreement.
To renew their agreement, Engineering For Kids requires franchisees to be in good standing, meaning they must have paid all outstanding amounts to Engineering For Kids, its affiliates, and major suppliers. Franchisees must also not be in default of any agreements and must have substantially complied with all obligations throughout the term. Franchisees may also need to make capital expenditures to meet current image and operating standards, including upgrading equipment and ensuring their locations comply with the latest specifications.
Finally, franchisees must pay a discounted successor franchise fee of $3,500 and sign a general release of claims against Engineering For Kids and its affiliates. The franchisee, operating principal, and designated employees may also be required to complete additional training courses.