How can Engineering For Kids apply franchisee payments to past due debts?

According to the 2025 Engineering For Kids Franchise Disclosure Document, Engineering For Kids has the right to apply a franchisee's payments to any past due debts. Specifically, Engineering For Kids can allocate payments in amounts and order that they determine. This gives Engineering For Kids considerable discretion in how they handle franchisee payments when there are outstanding balances.

This policy is fairly standard in franchising, as it protects the franchisor's financial interests. It means that if an Engineering For Kids franchisee has multiple outstanding debts (e.g., royalties, advertising fees, late fees), Engineering For Kids can choose which debt to apply a payment to first. This could be strategically important for Engineering For Kids, for example, if they want to ensure that certain critical fees like royalties are always current.

For a prospective Engineering For Kids franchisee, this highlights the importance of staying current on all payments. If a franchisee falls behind, they may not be able to direct their payments to specific debts, and Engineering For Kids will decide how the money is allocated. This could lead to further late fees and interest charges if the franchisee is not careful. Franchisees should maintain open communication with Engineering For Kids regarding any financial difficulties to potentially negotiate a payment plan or other arrangement.