Are any of the fees or costs estimated in Item 7 of the Engineering For Kids FDD refundable?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- Please review the above table together the notes that follow.
- None of the fees or costs estimated in this Item 7 are refundable except to the extent that you can negotiate with vendors. Payments to us are not refundable.
- Please note that we do not offer direct or indirect financing to you for any items or the Initial Franchise Fee (although we provide discounts to Initial Franchise Fee in certain circumstances as described in Item 5 of this disclosure document). The availability and terms of financing from other sources will likely depend on factors such as the availability of financing generally, your creditworthiness, and the policies of lending institutions.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, most fees and costs outlined in Item 7 are non-refundable. The FDD specifies that payments made directly to Engineering For Kids are not refundable. However, there is a slight possibility of negotiating refunds with third-party vendors.
Item 7 includes various estimated initial investment costs, such as the initial franchise fee of $30,000, rent ranging from $7,500 to $15,000, and an on-site location review fee that could be between $0 and $500. Additional costs include leasehold improvements estimated between $10,000 and $50,000, furniture, fixtures, and equipment ranging from $5,000 to $7,500, and office equipment and supplies costing between $1,150 and $3,700. These costs are generally paid to outside suppliers or landlords, and Engineering For Kids suggests that franchisees may be able to negotiate with these vendors for potential refunds.
Other expenses listed in Item 7 include opening inventory and supplies, classroom laptop computers, initial marketing activities (with a minimum of $2,500), training expenses, insurance, business licenses, professional fees, utility deposits, and additional funds for the first three months of operation. These costs are paid to designated suppliers, third parties, government agencies, and insurance companies. While payments to Engineering For Kids are non-refundable, it may be possible to negotiate refunds with these external vendors, although this is not guaranteed.
Prospective franchisees should carefully consider these non-refundable costs and the potential for negotiating refunds with vendors when planning their initial investment. It is advisable to consult with legal and financial advisors to fully understand the financial implications before entering into a franchise agreement with Engineering For Kids.