What constitutes an overdue payment or report to Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ch may include, without limitation paying for services provided by approved third-party providers to the some or all Engineering for Kids Businesses, and the costs to develop, implement and/or license software, applications and other technologies. We the right to modify the use the Technology Fee as we determine appropriate.
3.7. Delinquency
Any payment or report we (or the appropriate marketing fund) do not actually receive on or before the date due will be deemed overdue. If any payment or report is overdue, you must pay us, in addition to the overdue amount, the greater
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, any payment or report that Engineering For Kids or its marketing fund does not actually receive by the due date is considered overdue. If a payment or report is overdue, the franchisee must pay a late fee in addition to the overdue amount. The late fee is the greater of $25 or interest on the overdue amount from the date it was due until paid, at a rate of 1.5% per month. This interest rate will not exceed the maximum amount or rate permitted by law. Engineering For Kids's entitlement to interest is in addition to any other remedies they may have.
This policy means that Engineering For Kids franchisees must ensure that all payments and reports are submitted and received on time to avoid incurring late fees and interest charges. The 1.5% monthly interest rate can add up quickly, so it is crucial to prioritize timely submissions. The franchisee is responsible for ensuring that Engineering For Kids actually receives the payment or report, so using reliable delivery methods and confirming receipt may be advisable.
Many franchise agreements include similar delinquency clauses to ensure timely payments and reporting. The specific amounts and interest rates can vary, but the general principle of charging late fees and interest on overdue amounts is common. Franchisees should carefully review the delinquency policies in their franchise agreements to understand their obligations and avoid penalties.