Is the on-site evaluation fee charged by Engineering For Kids refundable?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
d the type of ownership interest you are buying.
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- On-Site Location Evaluation. As further described in Items 5 and 11, you must identify the physical site for your EFK Center Location. We will review your proposals for your EFK Center Location. We are not required to conduct an on-site evaluation of the proposed EFK Center Location, but we may do so if we deem it advisable. If we conduct an on-site evaluation, we have the right to charge you for that on-site evaluation, which amount will be our actual costs (but not less than $500). If applicable, this amount will be payable upon our invoice and will be non-refundable. See Item 11 under "Site Selecti
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the on-site location evaluation fee is generally non-refundable. Engineering For Kids may conduct an on-site evaluation of a potential EFK Center Location. If they do, they have the right to charge the franchisee for the evaluation. This charge will be for the actual costs incurred by Engineering For Kids, but will not be less than $500. This amount is payable upon invoicing by Engineering For Kids.
This means that if Engineering For Kids decides to evaluate a potential site for your franchise, you will likely need to pay a fee to cover their costs, with a minimum charge of $500. This fee is non-refundable, regardless of whether you ultimately decide to proceed with that specific location or not. It is important for prospective franchisees to factor this potential cost into their initial investment calculations and to discuss the site evaluation process and associated fees with Engineering For Kids during their due diligence.
Prospective franchisees should carefully consider the site selection criteria outlined in Item 11 of the FDD to increase the likelihood that their proposed location will meet Engineering For Kids' requirements, potentially minimizing the need for multiple on-site evaluations and associated non-refundable fees. Understanding the factors that influence site suitability can help franchisees make informed decisions and manage their initial investment effectively.