When is the initial franchise fee considered fully earned by Engineering For Kids?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us an initial franchise fee, in the amount set forth on Appendix A. The Initial Franchise Fee is paid in consideration of the rights we have granted to you under this Agreement, is fully earned at the time paid, and is not refundable.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned at the time it is paid. This means that once the franchisee pays the initial fee to Engineering For Kids, Engineering For Kids has earned the fee and it is non-refundable. This fee is paid in exchange for the rights granted to the franchisee under the Franchise Agreement.
For a prospective Engineering For Kids franchisee, this means that the initial franchise fee is non-refundable once paid. It is important for the franchisee to conduct thorough due diligence before paying this fee, as it will not be returned, even if the franchisee later decides not to proceed with opening a franchise. This is a common practice in franchising, as the franchisor incurs costs in evaluating and onboarding new franchisees.
This policy highlights the importance of carefully reviewing the Franchise Agreement and understanding all obligations before investing in an Engineering For Kids franchise. Prospective franchisees should be certain of their decision before paying the initial franchise fee, as it is a sunk cost.