When is the transfer fee due for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
the Advertising section in Item 11. |
| 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 the 2025 Engineering For Kids Franchise Disclosure Document, the transfer fee of $5,000 is due at the time of transfer. This fee is required if a franchisee wants to transfer their Franchise Agreement or ownership to another party.
Paying this transfer fee relieves the transferee from the obligation to pay a new initial franchise fee under the Franchise Agreement they must enter into, which covers the remainder of the original term. Transfers can include the sale of the franchise 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.