What payments must an Engineering For Kids franchisee make before beginning operations?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
right to dissolve or change the franchise advisory council.
Computer System
You must buy (or lease) and maintain a computer system. The computer system will consist of certain hardware and software, as well as peripheral devices (such as printers). We have the right to specify the brands, types, makes, and models of your Computer System. You will have to abide by our requirements concerning the Computer System, which currently require running Windows 10 or 11 and certain other hardware and software and related customer registration and payment functions, and merchant and credit card processing gateway services (these will be part of a website interface that customers will use to sign up and pay for classes with your Franchised Business). We estimate that the costs associated with computers will be: (1) $1,000 to $2,000 to purchase or lease the required computer system for office computer system; (2) $150 to $200 as a one-time set-up to the vendor that will provide credit card processing gateway software and services; and (3) $2,600 to $4,500 for laptop computers and tablets used in instruction (for a total of estimate of $3,750 to $6,700).
This equipment will be used for recording all sales and related activities, Gross Sales, and customer information. You must record all sales by business category (After-School Programs, Workshops, Birthday Parties, Special Events, and Camps) and related activities. You must use the online customer registration software program and credit card processing gateway software and services (the "Merchant Services") that we designate or approve. Although we reserve the right to change software requirements, currently, we suggest that you use the Amilia's software program, which will be operated as part of a website interface that customers will use to sign up and pay for classes with your Franchised Business and includes Merchant Services. At this time, other than suggesting the use of Amilia for the customer registration and Merchant services, we have not designated required vendors for these items and services, and you may purchase the computer hardware and software from any supplier, if the equipment meets our specifications.
We do not currently have independent access to your computers (or the information stored there), but will have the right to request access to all of your information and data (or to change our standards to permit us to have independent access), and there are no contractual limitations on our right to access the information and data. If we implement a new accounting program/system, you will have 12 months to fully integrate the new program/system. We also can require that you use and keep updated approved contact management software to track customer information.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–36)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, franchisees must make several payments before beginning operations. These include costs associated with the computer system, which are estimated to be between $1,000 and $2,000 for the office computer system, $150 to $200 as a one-time set-up fee for credit card processing gateway services, and $2,600 to $4,500 for laptop computers and tablets used in instruction. The total estimated cost for the computer system ranges from $3,750 to $6,700.
Additionally, franchisees may need to allocate funds for local marketing and promotion, as Engineering For Kids may designate a portion of advertising obligations as minimum amounts to be spent independently on local marketing within the franchisee's territory. Franchisees are also responsible for the costs of participating locally in special promotional activities required by Engineering For Kids.
Furthermore, if a Regional Fund has been established for the franchisee's area at the time they begin operations, they must immediately become a member. Franchisees are required to submit their Regional Contribution to the Regional Fund via electronic funds transfer, following the same schedule as their Royalty Fees. They will also need to submit any required reports to the Regional Fund. Franchisees are also responsible for securing and preparing their business location, which includes expenses for construction, remodeling, furnishing, decorating, and equipping the location to meet Engineering For Kids' standards.
Prospective Engineering For Kids franchisees should carefully review Item 7 of the FDD, which provides a comprehensive breakdown of the estimated initial investment, and consult with existing franchisees to understand the potential pre-opening expenses in more detail.