How do I check a STEM enrichment business’s school and community centre contracts before buying?

Many STEM, coding and chess programs do not own a classroom. They run as after-school clubs and camps in host schools, recreation centres and community centres. For a buyer, those host sites are part of what is being bought, and they are often held by an informal booking, not a long contract. Start by asking the seller for a complete site list.

Reading the contract list

For each site, note whether the arrangement is renewed term by term or covers several years, and who makes the booking: the program, a parent group or the host. Record the start date, the renewal history and the named contact. Some arrangements are written agreements, others are emails or approvals. Ask for whatever exists, and make a note of what is only understood.

Concentration on one host

Add up how much of the program’s enrolment and income comes from each site. If a few hosts account for most of it, losing one could change the business. Also look at how each host sees the program: whether it is a service the host wants or an option the host could replace with another provider or its own staff.

After a sale

Ask your lawyer whether each arrangement can pass to a buyer, whether the host must consent, and whether a change of owner could end it. Then ask your lawyer whether, with the seller’s agreement, you may speak to the host contacts yourself. Ask about the program’s reputation, any complaints, and what would make the host renew with a new owner.

What to request

• A site list with dates, renewal history and contacts.
• Copies of agreements, permits and insurance certificates the hosts require.
• Any incident or complaint records.
• The seller’s plan for introducing you to each host.

The same approach applies to a business that rents pool time, where access to the space is also central.