What are the gross sales thresholds for the 6% royalty rate for Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ring each Period. You will determine the Applicable Royalty Rate(s) for each Period, and calculate the Royalty due, based on the Gross Sales that you are reporting to us for that Period. To qualify for the reduced Applicable Royalty Rates, you must be in compliance with your Royalty and Brand Fund Contributi
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the royalty rate is determined by the gross sales during a specific period. For gross sales between $25,000.01 and $50,000 during the period, the applicable royalty rate is 6%.
In practical terms, this means that if an Engineering For Kids franchisee generates gross sales within this range in a given month (or other designated period), they will owe Engineering For Kids 6% of those sales as a royalty fee. It's important to note that the FDD specifies that a 'Period' is typically a month but can be changed by Engineering For Kids to bi-weekly or weekly with written notice.
For example, if an Engineering For Kids franchisee has gross sales of $40,000 in a month, their royalty payment to Engineering For Kids would be $2,400 (6% of $40,000). Understanding these thresholds is crucial for franchisees to forecast their expenses and manage their cash flow effectively. Franchisees should clarify with Engineering For Kids what constitutes a 'Period' to accurately calculate royalty payments.