Can Engineering For Kids modify the use of the Technology Fee as they determine appropriate?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
against us or others. You also agree that you will not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty fees or Advertising Contributions, nor withhold or delay submission of any reports due hereunder including but not limited to Sales Reports.
3.6. Technology Fee
You must pay us an ongoing monthly "Technology Fee" that we require, at such times and in such amounts as we may designate. The Technology Fee as of the Agreement Date is Two Hundred Dollars ($200) per month, but we reserve the right to increase this fee, provided that any increase will not exceed a monthly increase of Twenty-Five Dollars ($25) during any twelve (12) month period. You must pay the Technology Fee at the same time as, and in the same manner, as the Royalty fee pursuant to Sections 3.2 and 3.3 above, unless we otherwise specify in writing an alternative time and method of payment. We have the right to determine how and for what purposes the Technolog
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, Engineering For Kids has the authority to determine how the Technology Fee is used. This fee is an ongoing monthly charge that franchisees must pay. As of the agreement date, the Technology Fee is $200 per month. Engineering For Kids retains the right to increase this fee, but any increase is capped at $25 per month during any 12-month period. Franchisees must pay the Technology Fee at the same time and in the same manner as the Royalty fee, unless Engineering For Kids specifies otherwise in writing.
Engineering For Kids has the right to decide how and for what purposes the Technology Fee will be used. These purposes may include paying for services provided by approved third-party providers to some or all Engineering For Kids businesses. It can also include the costs to develop, implement, and/or license software, applications, and other technologies.
This means that Engineering For Kids has considerable discretion in allocating the Technology Fees collected from franchisees. While this provides Engineering For Kids with flexibility to adapt to changing technological needs and market conditions, it also means that franchisees may not have direct control over how their Technology Fee contributions are spent. Prospective franchisees should consider this when evaluating the franchise opportunity and may want to inquire about the franchisor's typical allocation of these funds.