What is the minimum monthly Royalty Fee for an Engineering For Kids franchise, and when does it begin?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
u and we sign the Franchise Agreement. Beginning in the seventh month after signing the Franchise Agreement, the "**Minimum Ro
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee. The royalty fee is either a percentage of gross sales or a minimum royalty amount, whichever is greater.
Specifically, beginning in the seventh month after signing the Franchise Agreement, the minimum royalty fee is $300 per month. Prior to the seventh month, there is no minimum royalty fee requirement. The standard royalty fee is a percentage of gross sales, with the specific percentage dependent on the amount of gross sales for the period.
This means that for the first six months of operation, an Engineering For Kids franchisee will only pay a royalty based on a percentage of their gross sales, which could be less than $300 if sales are low. After this initial period, the franchisee must pay at least $300 per month, regardless of sales volume. This minimum royalty ensures that Engineering For Kids receives a baseline income from each franchise location, even during slow months.