What are 'Territory Rules' for Engineering For Kids franchisees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ss you obtain our prior written approval, which we will not unreasonably withhold if you satisfy our then current criteria for operators of Learning Center Based Businesses and the conditions described in this Section 1.1.2.
1.2. Territory Rules
- 1.2.1. You may conduct Programs, advertise and market the services of the Franchised Business, and directly solicit participants, inside (but only inside) your Territory (subject to our right to approve all advertising and marketing materials as set forth in Section 9.4 below), except as otherwise provided below. "Direct solicitation" includes, but is not limited to, solicitation in person, by telephone, by mail, by e-mail or other electronic means, advertising, marketing, and by distribution of brochures, business cards or other materials.
- 1.2.2. You may not make direct solicitation to participants located, and/or conduct Programs, in the Territory of another Engineering For Kids Business (an "Assigned Area"). You may accept participants from an Assigned Area into Programs that you operate inside your Territory if you did not directly solicit such participants. If you receive an inquiry to conduct a Program to be located in an
Assigned Area, you must refer that Program to the Engineering For Kids Business operating in that Assigned Area.
- 1.2.3. You may directly solicit participants from, and conduct Programs in, areas located outside the Territory if those participants and/or Programs are not located in an Assigned Area (an "Open Area") and the following requirements are met. You may only solicit participants from, and conduct Programs in, Open Areas located within twenty-five (25) miles of your Territory. If you are conducting a Program in an Open Area (an "Outside Program") and that area later becomes an Assigned Area, then you must immediately give control of the Outside Program to the Engineering For Kids Business franchisee for that Assigned Area. Once an Open Area becomes an Assigned Area, you may no longer directly solicit participants from, or conduct any Programs in, the Assigned Area (except to the limited extent necessary to complete any commitments as described above).
- 1.2.4. You may conduct Programs, and accept participants from, outside of the Territory if you do so in compliance with Sections 1.2.1.-1.2.3 above.
- 1.2.5. You may accept requests to provide Special Event Services to be provided and conducted outside of the Territory so long as the request is from or referred by an existing customer of your Franchised Business who attends Programs at your Authorized Location(s) and you did not obtain the request in violation of Section 1.2.1.
- 1.2.6. If any of your advertising inside the Territory is in media that will or may reach a significant number of persons outside of the Territory, you must notify us in advance and obtain our prior written consent (in addition to the requirements in Section 9.4 below), which we will have the right to withhold. We may periodically establish rules and policies regarding such advertising. Additionally, we may periodically establish rules, guidelines and policies regarding you and other franchisee participation in other promotional activities and events (including without limitation, camp fairs and school fairs) that will or are reasonably expected to serve or draw potential customers and/or Third-Party Sites located in geographic areas serviced by more than one Engineering For Kids Business and/or in connection with Virtual Programs (during any period in which we may authorize or require Virtual Programs).
- 1.2.7. You acknowledge that: (a) other Engineering For Kids Businesses will generally operate under restrictions similar to those set out in Sections 1.2.1-1.2.6 (the "Territory Rules"), which means that in some instances, other Engineering For Kids Businesses may solicit participants residing inside your Territory or sponsor advertising that reaches persons in your Territory, or conduct Special Events in your Territory;
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, the 'Territory Rules' define how franchisees can conduct programs, advertise, market, and solicit participants within and outside their assigned territory. Franchisees are allowed to conduct programs, advertise, and directly solicit participants within their territory, subject to the franchisor's approval of advertising and marketing materials. Direct solicitation includes in-person, telephone, mail, email, advertising, marketing, and distribution of materials.
However, franchisees cannot directly solicit participants or conduct programs in another Engineering For Kids franchisee's assigned area. They can accept participants from another franchisee's area if they did not directly solicit them. If a franchisee receives an inquiry to conduct a program in another's assigned area, they must refer it to the franchisee operating in that area. Franchisees can solicit participants and conduct programs in open areas (areas outside any assigned territory) within 25 miles of their territory, but if that open area becomes an assigned territory, they must transfer control of any ongoing programs to the new franchisee.
Engineering For Kids may establish rules and policies regarding advertising in media that reaches outside the franchisee's territory and may also set guidelines for participation in promotional activities and events in areas served by multiple franchisees. While other Engineering For Kids franchisees generally operate under similar territory restrictions, the franchisor does not guarantee their enforcement and has no liability if other franchisees violate these rules. These rules are in place to provide a framework for franchisees to operate and grow their business while respecting the territories of other franchisees within the Engineering For Kids system.