What does the Engineering For Kids technology fee cover?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| • Local advertising: the greater of: 2% of the Gross Sales (the "Local Ad Percentage Spend") or $100 per month (the "Minimum Local Ad Spend"). | |||
| Additional Training or Assistance (note 4) | Our then-current standard training fee for initial training (currently $300 per person, subject to change) | At the time of the additional training | Training/assistance fee subject to change. You are responsible for all your costs including transportation, lodging, meals, and personal expenses. |
| Transfer Fee | $5,000 | At the time of transfer | If you want to transfer your Franchise Agreement or ownership, you must pay us this transfer fee. Paying this fee relieves the transferee from its obligation to pay a new initial franchise fee under the Franchise Agreement it must enter (for remainder of the term that applied under your franchise agreement). Transfers include, among other things, the sale of your franchise or an interest in your company. We will reduce the transfer fee to $1,400 in some circumstances where the transfer is of partial and non-controlling interests in your franchisee entity. |
| Renewal Fee | $3,500 | At the time of renewal | Renewal is subject to conditions and restrictions. |
| Technology Fee | Currently $200 per month | At same time as Royalty | We charge this fee for certain technology that we provide and/or may develop. We may increase this fee periodically, but any increases will not exceed $25 per month during any 12 month period. |
| Computer Systems, Maintenance and support | Currently $0 payable to us. May vary with cost of future service | As incurred | We or a required third party may charge you a fee for any proprietary software or technology (not otherwise covered by the Technology Fee) that we, our affiliates or a third party license |
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 technology fee covers certain technology that Engineering For Kids provides and/or may develop. This fee is currently $200 per month, due at the same time as royalty payments.
Engineering For Kids retains the right to increase this fee periodically; however, any increases will not exceed $25 per month during any 12-month period. In addition to the technology fee, Engineering For Kids, or a required third party, may charge franchisees a separate fee for any proprietary software or technology not covered by the technology fee. This also includes maintenance and support services that Engineering For Kids or a third party might provide in the future.
Prospective franchisees should consider that while the technology fee covers certain technologies, additional costs may arise for software, maintenance, and support. It is important to factor in potential increases to the technology fee, as well as the possibility of incurring separate charges for other technology-related services when assessing the overall cost of operating an Engineering For Kids franchise.