What is the 'Period' referenced in the Engineering For Kids royalty fee schedule?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in the Franchise Agreement, unless we specify otherwise in writing to you, you will pay the royalties monthly and a "Period" is a Month, but we have the right (after giving you written notice) to change the designated Period to alternative time frames including bi-weekly or weekly. The term "Month" means a calendar month or another 4-5 week period that we may otherwise designate.
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the 'Period' for royalty fee payments is generally a month. The royalty fees are calculated based on the Gross Sales for the prior 'Period'. While the standard 'Period' is monthly, Engineering For Kids retains the right to change the designated 'Period' to alternative time frames such as bi-weekly or weekly, provided they give the franchisee written notice.
The document specifies that royalty payments are due by the 5th day of each 'Period', or the next business day if the 5th day is a federal holiday. The 'Month' is defined as a calendar month or another 4-5 week period that Engineering For Kids may designate. This means that while franchisees typically pay royalties monthly, Engineering For Kids has the flexibility to adjust the payment schedule, which could impact the franchisee's cash flow management.
Prospective Engineering For Kids franchisees should be aware of this potential variability in the royalty payment schedule and consider how it might affect their financial planning. It would be prudent to discuss with Engineering For Kids their typical practices regarding changes to the payment 'Period' and under what circumstances they might exercise their right to alter it. Understanding these factors will help franchisees better prepare for and manage their ongoing financial obligations to Engineering For Kids.