Financial Assistance Provided: No
Site Selection Assistance: Yes
Lease Negotiation Assistance: Yes
Recruiting Assistance: Yes
Co-Operative Advertising: Yes
Training: On page 28 of the FDD.
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND
TRAINING
Except as listed below, we are not required to provide you with any
assistance.
Pre-Opening Obligations
A. Before you open your Academy, we will do the following:
(AEA FDD 2016 22)
1. We will provide you or your approved architect, at no charge,
AEAs copyrighted plan with standard specifications for the
construction of a prototypical Academy after you sign the Franchise
Agreement. These plans will either be paper copies or digital in
PDF format and plans will include exterior and interior design and
layout, display requirements, fixtures, furniture, equipment and
signage. You will, at your expense, adapt the standard
specifications to the Academy. (Franchise Agreement ?8, page
12).
2. We will review and approve or disapprove a proposed site that
you select for the actual location of the Franchised Academy. (?8,
page 12 of the Franchise Agreement, Site Selection Addendum, FA
II).
3. We will designate your protected territory. In our discretion,
AEA will designate the boundaries by post Zipi Codes, roads,
political boundaries (municipal, county, state or national
borders), geographic boundaries (lakes, rivers and oceans), a
radius defined by driving distance from approved location or a
combination of these factors.
4. If you lease the site for your Franchised Academy, we will
approve or disapprove your lease. We may require, as a condition of
approval, that your lease contain the lease terms specified. (e.g.,
provision that restricts the use of the premises solely to the
operation of your Franchise; timely payments due AEA and suppliers;
restrictions on assigning the lease; right for Franchisor to cure
default; notifications, etc. (Franchise Agreement, ? 8, page
12).
5. We will provide an initial training program of up to 5 days of
on-site assistance for you (or if the franchisee is not an
individual, for the person designated by the franchisee as
responsible for the general oversight and management of the
Franchised Academy) and for two additional managers prior to the
opening at the location we designate, currently at your Academy
Location (Franchise Agreement, ?13, page 25).
6.We will loan you one copy of AEA's Confidential Manual, or give
you access to a virtual copy, which contains mandatory and
suggested specifications, standards, forms and procedures for
operating the Franchise Academy after you sign the Franchise
Agreement. Our Manual is Confidential and remains our property at
all times. We may modify the Manual from time to time, but the
modification will not alter your status and rights under the
Franchise Agreement. You must keep the Manual confidential and
current and you may not copy any part of the Manual. (Franchise
Agreement ?7, page11). The Manual Table of Contents is reproduced
in Exhibit N. The total number of pages of the Manual as of the
date of the Offering Circular is 295.
7. We will provide you with AEA's Proprietary STEAM Curriculum and
AEA's Teacher Training Program.
8. We will provide you with a list of approved suppliers for all
equipment, supplies, products and services necessary to operate
your Franchised Academy. (Franchise Agreement ?9, page 16).
9. We will provide to you such on-site pre-opening and opening
supervision and assistance as we, in our sole discretion, deem
advisable, subject to the availability of our personnel (Franchise
Agreement ?13, page 25).
10. At your request and in the event you enter into a Real Estate
Agreement, AEA will review your market area, determine site
feasibility and designate the location of the Development Area and
Designed Location.
11. We will provide guidelines for your grand opening advertising
and promotion programs.
We need not provide you with any other service or assistance before
you open your Academy. Length of Time to Open Your Academy
We estimate that the typical time period between signing the
Franchise Agreement and opening a new AEA Academy will vary from 6
to 18 months, depending upon factors such as ability to locate a
site, negotiate a lease, secure financing, obtain permits and
licenses, construct or build out an existing site, purchase and
install fixtures, equipment, sign and supplies, and hire and train
personnel. If you lease an existing facility, the time to open your
Academy may be considerably less since much of the process will be
eliminated (purchasing property, securing loan on real estate,
hiring contractors, etc.). You must open your Franchise Academy
within 18 months after signing the Franchise Agreement or we have
the right to terminate your franchise without refunding any fees
you have paid. (Franchise Agreement ?21, page 39).
B. Continuing Support. Although not obligated to do so, we may
also:
(AEA FDD 2016 23)
1. Provide such other training programs, after the opening of the
Academy as we, in our sole discretion, deem appropriate and at your
expense. (Franchise Agreement ?13.2 page 25).
2. Conduct periodic inspections and written evaluations (Standard
of Excellence Report) of your operations (products and services
offered). (Franchise Agreement ?10.2.7, page 20).
3. Provide such continuing advisory assistance to you in the
operation of the Franchised Academy, as we, in our sole discretion,
deem advisable. (Franchise Agreement ?8, page12, ?13 page 25
and?14, page 27).
4. Periodically provide to you, at our sole discretion, advice and
written materials or videos concerning techniques for teaching,
managing and operating the Franchised Academy. This advice may
include required and suggested inventory and sales instructions,
new developments and improvements in Academy layout and design, and
new developments in teaching methods, services, merchandising and
packaging of products and services. We are not obligated to assist
you in obtaining your inventory. (Franchise Agreement ?9, page 15,
?10 page19).
5. Advise you, at our sole discretion, of recent developments and
research in the field of education that might impact your Academy
and provide knowledge regarding curriculum and teaching methods and
materials as these factors impact the System. (Franchise Agreement
?10, page19).
6. Issue updated information and revisions to the Manual as new and
improved methods, systems and procedures for the operation of your
Franchise are developed or adopted by us and as we deem
appropriate. (Franchise Agreement ?7, page11).
7. Provide local and regional advertising as deemed appropriate by
AEA.
8. Evaluate previously unapproved items that you propose for use in
your Academy.
9. Provide telephone and e-mail support during business hours at no
charge.
Other Info: Franchisee has to read FDD, Manuals and go through
training.