What is the transfer fee 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 |
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 standard transfer fee is $5,000. This fee is payable at the time of the transfer if a franchisee wants to transfer their Franchise Agreement or ownership. 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 the sale of the franchise or an interest in the company.
However, the transfer fee may be reduced to $1,400 in some circumstances where the transfer is of partial and non-controlling interests in the franchisee entity. This reduced fee provides some flexibility for smaller ownership adjustments within an existing franchise.
Transfer fees are common in franchising and typically cover the franchisor's administrative costs and the costs of training and onboarding a new franchisee. The Engineering For Kids transfer fee is fairly standard compared to other franchise systems. Prospective franchisees should consider the transfer fee when planning their exit strategy or considering selling a portion of their business.