To whom does Engineering For Kids pay a royalty fee for the use of franchise rights?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Useful Life - Years | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Website | 5 | $ 53,089 | $ 51,281 | $ 22,345 |
| Less accumulated amortization | (12,672) | (2,235) | (2,235) | |
| Intangible assets, net | $ 40,417 | $ 49,046 | $ 20,110 |
NOTE 4 - RELATED PARTY TRANSACTIONS
The franchise rights are held by LaunchLife USA, Inc., their parent company. The Company's rights to acquire, administer and collect fees from its franchisees is contingent on LaunchLife USA, Inc. holding the franchise rights. The Comp
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, Engineering For Kids International, LLC pays a royalty fee to LaunchLife USA, Inc. for the use of the franchise rights. LaunchLife USA, Inc. is the parent company of Engineering For Kids International, LLC, which means that Engineering For Kids's right to administer and collect fees from its franchisees depends on LaunchLife USA, Inc. holding the franchise rights.
In 2024, Engineering For Kids paid $83,700 in royalty fees to LaunchLife USA, Inc. In 2023, the royalty fees were $78,400, and in 2022, they amounted to $36,000. This demonstrates a fluctuating but generally increasing trend in the royalty fees paid by Engineering For Kids to its parent company over these three years.
This related party transaction is important for prospective franchisees to understand. It highlights the financial relationship between Engineering For Kids and its parent company, LaunchLife USA, Inc. Any changes in the financial stability or ownership of LaunchLife USA, Inc. could potentially impact Engineering For Kids and its franchisees. Therefore, it is advisable for potential franchisees to further investigate the financial health and stability of LaunchLife USA, Inc. to assess any potential risks.