How and when must the Engineering For Kids Technology Fee be paid, and what is the exception to this?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
against us or others. You also agree that you will not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty fees or Advertising Contributions, nor withhold or delay submission of any reports due hereunder including but not limited to Sales Reports.
3.6. Technology Fee
You must pay us an ongoing monthly "Technology Fee" that we require, at such times and in such amounts as we may designate. The Technology Fee as of the Agreement Date is Two Hundred Dollars ($200) per month, but we reserve the right to increase this fee, provided that any increase will not exceed a monthly increase of Twenty-Five Dollars ($25) during any twelve (12) month period. You must pay the Technology Fee at the same time as, and in the same manner, as the Royalty fee pursuant to Sections 3.2 and 3.3 above, unless we otherwise specify in writing an alternative time and method of payment. We have the right to determine how and for what purposes the Technolog
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees must pay a monthly Technology Fee. As of the agreement date, this fee is $200 per month. Engineering For Kids retains the right to increase this fee, but increases are capped at $25 per month during any 12-month period.
The Technology Fee must be paid at the same time and in the same manner as the Royalty fee, as detailed in Sections 3.2 and 3.3 of the franchise agreement. The exception to this is if Engineering For Kids specifies an alternative time and method of payment in writing.
Engineering For Kids has the authority to determine how the Technology Fee is used. This may include paying for services from approved third-party providers for Engineering For Kids businesses, as well as covering the costs to develop, implement, and/or license software, applications, and other technologies. Engineering For Kids also has the right to modify the use of the Technology Fee as it deems appropriate.