What is the due date for contributions to the Brand Fund for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
escribed above.
ITEM 6 OTHER FEES
| Type of Fee (note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fees | The greater of: (a) the Applicable Royalty Rate(s) multiplied by the Gross Sales for the Period, or (b) a Minimum Royalty, which will be $300 per month beginning in the 7th month after you sign the Franchise Agreement. See Remarks for the Applicable Royalty Rates. | Payable monthly (at this time) on or before the 5th day of each subsequent Period (note 2) | The "Applicable Royalty Rates" are (note 2): • 7% of Gross Sales between $0 to $25,000 during the Period, • 6% of Gross Sales between $25,000.01 to $50,000 during the Period, and • 5% of Gross Sales in excess of $50,000 during the Period "Gross Sales" means all of your revenue from operating your Franchised Business, but excluding taxes collected from customers and paid to taxing authority, and customer coupon sales (for which customers do not pay for complimentary or reduced price services or product) and refunds. |
| Advertising Obligations (note 3) • Brand Fund • Regional Fund • Local Advertising expenditures | Maximum: 4% of your Gross Sales, plus (if applicable) the amount that your Minimum Local Ad Spend exceeds your Local Ad Percentage Spend for the month. Currently: • Brand Fund: 2%; and | Same as Royalty for contributions to the Brand Fund | We may require you to contribute to a Brand and/or a "Regional Fund" and/or conduct and spend monies on local advertising. We currently require you to make contributions to the Brand Fund and to directly spend monies on local advertising that you conduct. We can change the allocation between the forms of advertising. Please see Note 3 below an |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, contributions to the Brand Fund are due at the same time as royalty fees. Royalty fees are payable monthly on or before the 5th day of each subsequent period. If the 5th day of the month falls on a federal holiday, the due date is extended to the next business day. The amount due will be based on the Gross Sales for the prior period.
Engineering For Kids may require franchisees to make these payments via ACH (electronic fund transfer). Franchisees must maintain a sufficient balance in their operating account to meet the payment requirements if this method is required. Franchisees must also furnish Engineering For Kids and their bank with all authorizations necessary to effect payment by the methods Engineering For Kids specifies.
The Brand Fund contribution is currently set at 2% of gross sales. To qualify for reduced royalty rates (less than 7%), franchisees must comply with their royalty and Brand Fund contribution requirements. Franchisees are not allowed to deduct or withhold any royalty fees, Advertising Contributions, interest charges, or any other monies payable under the Franchise Agreement based on Engineering For Kids's alleged nonperformance of any obligations.