What is the frequency of royalty payments for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty Fees, and Electronic Payment. You must pay your royalties and (if applicable) Advertising Contributions by 5th day of each Period (or the next business day if the 5th day
is a federal holiday). The amounts will be based on the Gross Sales for the prior Period (but the Royalty payment will not be less than the "Minimum Royalty" when applicable). The Minimum Royalty requirement will not apply during the first six months after you and we sign the Franchise Agreement. Beginning in the seventh month after signing the Franchise Agreement, the "Minimum Royalty" will be equal to $300 per month. To qualify for the reduced Applicable Royalty Rates (e.g., those less than 7%), you must be in compliance with your Royalty and Brand Fund Contribution requirements.
We have the right to require you to make these payments by means of ACH (electronic fund transfer). As described in the Franchise Agreement, unless we specify otherwise in writing to you, you will pay the royalties monthly and a "Period" is a Month, but we have the right (after giving you written notice) to change the designated Period to alternative time frames including bi-weekly or weekly. The term "Month" means a calendar month or another 4-5 week period that we may otherwise designate.
If we require payment via wire transfer or electronic debit to your bank account, you must maintain sufficient balance in your operating account to meet the payment requirements. You must furnish us and your bank with all authorizations necessary to effect payment by the methods we specify. You may not, under any circumstances, set off, deduct or otherwise withhold any royalty fees, Advertising Contributions, interest charges, or any other monies payable under the Franchise Agreement on grounds of our a
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, franchisees are typically required to make royalty payments on a monthly basis. These payments, along with any applicable advertising contributions, are due by the 5th day of each period, or the next business day if the 5th falls on a federal holiday. The royalty amount is calculated based on the Gross Sales for the prior period, but there is a minimum royalty payment of $300 per month starting in the seventh month after signing the Franchise Agreement.
Engineering For Kids has the right to require franchisees to make these payments via electronic fund transfer (ACH). Franchisees must ensure they maintain a sufficient balance in their operating account to cover these payments and provide the necessary authorizations to facilitate electronic transfers.
While the standard payment period is monthly, Engineering For Kids retains the right to change the designated period to bi-weekly or weekly, provided they give the franchisee written notice. The term "Month" is defined as a calendar month or another 4-5 week period that Engineering For Kids may designate. Franchisees are not allowed to deduct or withhold any royalty fees or other payments due under the Franchise Agreement, even in cases of alleged non-performance by Engineering For Kids.