What is the standard transfer fee for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
cluding to cooperate with us in obtaining the information that we need in order to review and consider the qualifications of a prospective transferee and to provide us with a copy of the purchase agreement with the buyer.
14.4. Transfer Fee
For a proposed Transfer of the Franchised Business or this Agreement (or, if you are a corporation or other entity, a Transfer of ownership interests that would result in a change of control of your entity), you must pay to us a Transfer fee in the amount of Five Thousand Dollars ($5,000), unless the Transfer qualifies for the reduced fee for a partial interest Transfer under Section 14.5 below.
14.5. Transfer of Partial Ownership Interest
For any proposal to admit a new Owner, to remove an existing Owner, or to change the distribution of ownership shown on the cover page, or for any other transaction that amounts to the Transfer of a partial interest in the Franchised Business, and provided that all such changes would not result in a change of control of your entity, you must give us advance notice and submit a copy of all proposed contracts and other information concerning the Transfer that we may request. Provided that you provide us with all information and documents that we request in co
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, the standard transfer fee is reduced to $1,400 if you provide all requested information and documents related to the partial transfer of the franchise. This reduced fee applies when admitting a new owner, removing an existing one, changing ownership distribution, or any transaction that involves transferring a partial interest, provided it doesn't result in a change of control of the entity.
To initiate a partial transfer, the Engineering For Kids franchisee must give advance notice and submit all proposed contracts and relevant information requested by Engineering For Kids. The franchisor then has a reasonable time, at least 30 days after receiving all the necessary information, to evaluate the proposed transfer. The franchisee must also ensure that the conditions outlined in Sections 14.3.2(a), 14.3.3, 14.3.4, 14.3.5, and 8.4 of the franchise agreement are met.
Engineering For Kids may withhold consent for the transfer on reasonable grounds or grant it subject to certain conditions. Any proposed new owner is required to submit a personal application and execute a personal guarantee, similar to what the original owners did. If these conditions are met, the transfer fee is reduced; otherwise, it is important for a prospective franchisee to clarify the full standard transfer fee with the franchisor, as this document does not explicitly state it.