What is the dependency between the royalty payment and the technology fee for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| • Local advertising: the greater of: 2% of the Gross Sales (the "Local Ad Percentage Spend") or $100 per month (the "Minimum Local Ad Spend"). | |||
| Additional Training or Assistance (note 4) | Our then-current standard training fee for initial training (currently $300 per person, subject to change) | At the time of the additional training | Training/assistance fee subject to change. You are responsible for all your costs including transportation, lodging, meals, and personal expenses. |
| Transfer Fee | $5,000 | At the time of transfer | If you want to transfer your Franchise Agreement or ownership, you must pay us this transfer fee. Paying this fee relieves the transferee from its obligation to pay a new initial franchise fee under the Franchise Agreement it must enter (for remainder of the term that applied under your franchise agreement). Transfers include, among other things, the sale of your franchise or an interest in your company. We will reduce the transfer fee to $1,400 in some circumstances where the transfer is of partial and non-controlling interests in your franchisee entity. |
| Renewal Fee | $3,500 | At the time of renewal | Renewal is subject to conditions and restrictions. |
| Technology Fee | Currently $200 per month | At same time as Royalty | We charge this fee for certain technology that we provide and/or may develop. We may increase this fee periodically, but any increases will not exceed $25 |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, the Technology Fee is due at the same time as the Royalty payments. The Technology Fee is currently $200 per month. The FDD specifies that Engineering For Kids charges this fee for certain technology that they provide and/or may develop.
Engineering For Kids may increase the Technology Fee periodically, but these increases are capped at a maximum of $25 per month during any 12-month period. This provides some predictability for franchisees in terms of budgeting for this expense.
It is important to note that the Technology Fee is separate from other potential computer systems, maintenance, and support fees. These additional fees may be charged by Engineering For Kids or a required third party for proprietary software or technology not covered by the Technology Fee, as well as for other maintenance and support services.