What does the Engineering For Kids transfer 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 |
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 transfer fee is $5,000. This fee is required if a franchisee wants to transfer their Franchise Agreement or ownership to someone else. Paying this fee allows the transferee to avoid paying a new initial franchise fee, which would otherwise be required under the new Franchise Agreement. The new agreement will be for the remainder of the original term that applied under the original franchisee's agreement.
The transfer can include the sale of the franchise itself or an interest in the franchisee's company. However, Engineering For Kids may reduce the transfer fee to $1,400 in certain situations where the transfer involves partial and non-controlling interests in the franchisee entity. This provides some flexibility in the event of smaller ownership changes.
In the franchise industry, transfer fees are common when a franchisee sells their business to a new owner. These fees typically cover the franchisor's costs of reviewing and approving the transfer, providing training to the new owner, and updating the franchise agreement. The Engineering For Kids transfer fee structure appears fairly standard, with a lower fee for partial transfers, which is a benefit to franchisees.