Under what circumstances is the Engineering For Kids transfer fee reduced to $1,400?
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 the 2025 Engineering For Kids Franchise Disclosure Document, the standard transfer fee is $5,000. However, Engineering For Kids may reduce this fee to $1,400 under specific circumstances related to the nature of the transfer.
The reduced transfer fee of $1,400 applies when the transfer involves partial and non-controlling interests within the franchisee entity. This suggests that if a franchisee is selling a portion of their ownership but retaining control, they may qualify for the lower fee. This is a notable benefit for existing franchisees looking to bring in partners or investors without relinquishing control of their Engineering For Kids franchise.
It is important for prospective franchisees to understand the specific conditions under which the transfer fee is reduced. They should seek clarification from Engineering For Kids regarding what constitutes a "partial and non-controlling interest" to ensure they can take advantage of the reduced fee if the situation arises. This could involve consulting with a franchise attorney to fully understand the implications of transferring ownership interests and the associated fees.