If a payment to Engineering For Kids is overdue, what late fee will be charged?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ch may include, without limitation paying for services provided by approved third-party providers to the some or all Engineering for Kids Businesses, and the costs to develop, implement and/or license software, applications and other technologies. We the right to modify the use the Technology Fee as we determine appropriate.
3.7. Delinquency
Any payment or report we (or the appropriate marketing fund) do not actually receive on or before the date due will be deemed overdue. If any payment or report is overdue, you must pay us, in addition to the overdue amount, the greater
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, if a payment or report is not received by the due date, it is considered overdue. In such cases, Engineering For Kids will charge the franchisee the greater of either a $25 late fee or an interest charge of 1.5% per month on the overdue amount.
This interest is calculated from the original due date until the payment is made. However, the interest rate will not exceed the maximum amount or rate permitted by law. This late fee and interest charge are in addition to any other remedies that Engineering For Kids may pursue for the overdue payment.
For a prospective Engineering For Kids franchisee, this means that it is crucial to ensure all payments and reports are submitted on time to avoid incurring these additional charges. The 1.5% monthly interest can add up quickly, especially on larger overdue amounts, so maintaining timely payments is essential for managing costs and maintaining a good financial standing with the franchisor.