What are some examples of how Engineering For Kids may use the Technology Fee?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
against us or others. You also agree that you will not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty fees or Advertising Contributions, nor withhold or delay submission of any reports due hereunder including but not limited to Sales Reports.
3.6. Technology Fee
You must pay us an ongoing monthly "Technology Fee" that we require, at such times and in such amounts as we may designate. The Technology Fee as of the Agreement Date is Two Hundred Dollars ($200) per month, but we reserve the right to increase this fee, provided that any increase will not exceed a monthly increase of Twenty-Five Dollars ($25) during any twelve (12) month period. You must pay the Technology Fee at the same time as, and in the same manner, as the Royalty fee pursuant to Sections 3.2 and 3.3 above, unless we otherwise specify in writing an alternative time and method of payment. We have the right to determine how and for what purposes the Technolog
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees must pay a monthly Technology Fee. As of the Agreement Date, this fee is $200 per month. Engineering For Kids retains the right to increase this fee, but increases are capped at $25 per month during any 12-month period. Franchisees must pay the Technology Fee at the same time and in the same manner as the Royalty fee, unless Engineering For Kids specifies otherwise in writing.
Engineering For Kids has the discretion to determine how the Technology Fee is used. Examples of potential uses include paying for services from approved third-party providers to some or all Engineering For Kids businesses. The Technology Fee may also cover the costs to develop, implement, and/or license software, applications, and other technologies.
This means that while franchisees contribute to the Technology Fee, Engineering For Kids ultimately decides how those funds are allocated to support the brand's technology infrastructure and related services. This arrangement is fairly typical in franchising, where technology is seen as a critical component of maintaining brand standards and operational efficiency. However, franchisees have limited control over the specific technology investments made by the franchisor.