Under what conditions can an Engineering For Kids franchisee terminate the Franchise Agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary * | |
|---|---|---|---|
| Franchise or other Agreement | |||
| c Requirements for you to renew or extend | 2.2 | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, not in material default, release, sign then-current form of Franchise Agreement (which may contain materially different terms and conditions than the original agreement), pay a renewal fee, and others; please refer to §§ 2.2.1 –2.2.7 in the Franchise Agreement. | |
| d Termination by you | Not applicable | Subject to state law, you may not terminate the Franchise Agreement. | |
| e Termination by us | Not applicable | ||
| without cause | |||
| f Termination by us with cause | 15 | Default under agreement, bankruptcy, abandonment, and other grounds; see § 15 of the Franchise Agreement. (Under the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., we may be unable to terminate the agreement merely because you make a bankruptcy filing.) |
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, franchisees are generally not permitted to terminate the Franchise Agreement. Item 17 details the conditions for renewal, termination, transfer, and dispute resolution, and it specifically states that, subject to state law, a franchisee may not terminate the Franchise Agreement. This is a notable restriction, as in many franchise systems, franchisees have at least some limited rights to terminate the agreement under specific circumstances.
This lack of termination rights places a significant obligation on the Engineering For Kids franchisee. Once the agreement is signed, the franchisee is committed for the entire term (5 years, according to the table) and any renewal terms, unless Engineering For Kids terminates the agreement. This makes the initial decision to invest in an Engineering For Kids franchise particularly important, as the franchisee has limited recourse if their circumstances change or the business does not meet their expectations.
Engineering For Kids, however, retains the right to terminate the agreement with cause under various conditions. These include default under the agreement, bankruptcy, abandonment, or other grounds as detailed in Section 15 of the Franchise Agreement. It is important to note that even in the case of bankruptcy, Engineering For Kids's ability to terminate the agreement may be limited by the U.S. Bankruptcy Code. Prospective franchisees should carefully review Section 15 of the Franchise Agreement to fully understand the circumstances under which Engineering For Kids can terminate the agreement, as well as Exhibits G and H for any state-specific addenda or amendments that may apply.