What payment methods does Engineering For Kids designate for fees and charges?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Proprietary Marks. |
Notes:
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- General. We impose and collect all fees, except for certain local advertising that you will spend directly (see Item 11 for details) and except for product and service purchases described in Item 8. For all fees and charges, you must use the payment method we designate, which may include electronic funds transfer. All fees are non-refundable. All fees are uniformly applied to new system franchisees. However, in some instances in which it is appropriate to do so, we may waive or modify these fees for a particular franchisee.
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- Royalty Fees, and Electronic Payment. You must pay your royalties and (if applicable) Advertising Contributions by 5th day of each Period (or the next business day if the 5th day
is a federal holiday). The amounts will be based on the Gross Sales for the prior Period (but the Royalty payment will not be less than the "Minimum Royalty" when applicable). The Minimum Royalty requirement will not apply during the first six months after you and we sign the Franchise Agreement. Beginning in the seventh month after signing the Franchise Agreement, the "Minimum Royalty" will be equal to $300 per month. To qualify for the reduced Applicable Royalty Rates (e.g., those less than 7%), you must be in compliance with your Royalty and Brand Fund Contribution requirements.
We have the right to require you to make these payments by means of ACH (electronic fund transfer).
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, franchisees must use the payment methods designated by Engineering For Kids for all fees and charges, except for local advertising and product/service purchases described in Item 8 and Item 11. These designated payment methods may include electronic funds transfer.
Engineering For Kids has the right to require franchisees to make royalty and advertising contribution payments via ACH (electronic fund transfer). If Engineering For Kids requires payment via wire transfer or electronic debit to the franchisee's bank account, the franchisee must maintain a sufficient balance in their operating account to meet the payment requirements. The franchisee must also furnish Engineering For Kids and their bank with all authorizations necessary to effect payment by the methods Engineering For Kids specifies.
The FDD specifies that franchisees are not allowed to deduct or withhold any royalty fees, advertising contributions, interest charges, or any other monies payable under the Franchise Agreement due to alleged nonperformance of any obligations by Engineering For Kids.