What was the amount due to related party for Engineering For Kids in 2023?

According to Engineering For Kids' 2025 Franchise Disclosure Document, the amount due to its related party (parent company) in 2023 was $115,040. This figure represents the outstanding balance Engineering For Kids owed to its parent company, LaunchLife USA, Inc., as of December 31, 2023. LaunchLife USA, Inc. holds the franchise rights and Engineering For Kids pays them royalty fees for these rights.

This related party transaction is important for prospective franchisees to understand because it highlights the financial relationship between Engineering For Kids and its parent company. The FDD also states that the amounts due to its parent company were $51,166 at December 31, 2022. The amount due from the parent company was $14,968 at December 31, 2024.

Understanding these related-party transactions can give a franchisee insight into the overall financial structure and obligations of Engineering For Kids. It's a common practice for franchisors to have dealings with affiliated companies, but the extent and nature of these transactions can vary significantly. Franchisees should carefully review these disclosures and seek clarification from Engineering For Kids regarding the nature of these transactions and their potential impact on the franchise system.

Prospective franchisees should consider how these related-party transactions might affect the financial stability and operational decisions of Engineering For Kids. While such transactions are not inherently negative, transparency and understanding are crucial for making informed investment decisions.