What is the cost basis for the on-site evaluation fee charged by Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
d the type of ownership interest you are buying.
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- On-Site Location Evaluation. As further described in Items 5 and 11, you must identify the physical site for your EFK Center Location. We will review your proposals for your EFK Center Location. We are not required to conduct an on-site evaluation of the proposed EFK Center Location, but we may do so if we deem it advisable. If we conduct an on-site evaluation, we have the right to charge you for that on-site evaluation, which amount will be our actual costs (but not less than $500). If applicable, this amount will be payable upon our invoice and will be non-refundable. See Item 11 under "Site Selecti
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, the cost basis for the on-site location evaluation fee is the franchisor's actual costs, with a minimum charge of $500. This fee is charged if Engineering For Kids deems an on-site evaluation of the proposed EFK Center Location advisable.
For a prospective Engineering For Kids franchisee, this means that if the franchisor decides to conduct an on-site evaluation of the location you propose for your EFK Center, you will be responsible for covering their costs. These costs could include travel, lodging, and personnel time. The FDD specifies that the fee will not be less than $500, providing a lower bound for this expense.
It is important to note that the on-site evaluation is not mandatory for Engineering For Kids. The franchisee should clarify with Engineering For Kids under what circumstances they conduct these evaluations and what factors influence the actual costs incurred. This will help in budgeting and financial planning during the initial setup phase.