Engineering for Kids
Engineering for Kids offers hands-on STEM education programs for children. Known for its innovative workshops and camps, it operates in the educational franchising sector.
Engineering for Kids franchise FAQ
How much does it cost to open one — the total initial investment?
The estimated total initial investment necessary to begin operation of an Engineering For Kids franchise ranges from $71,200 to $139,750 [p.1]. This includes the initial franchise fee of $30,000 [p.9] and other startup costs.
What is the initial franchise fee?
The initial franchise fee is currently $30,000 unless you qualify for one of the 10% discounts described below [p.9]. This fee is non-refundable and fully earned upon payment [p.62].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of gross sales, with a minimum monthly requirement. For the first six months, there is no minimum royalty required. Starting from the seventh month, the minimum royalty is $300 per month, but it can be higher depending on gross sales. Additionally, an ongoing Technology Fee of $200 per month applies, which can increase by up to $25 per month in any 12-month period, though this fee is paid separately from the Royalty and does not have a minimum requirement [p.62, p.63].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, you have the option to sign a new standard form of Franchise Agreement for a new initial term upon expiration [p.84], but there are no limitations on how different the terms of this new agreement can be from the current one except that your Territory will remain unchanged.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can generally sell or transfer your franchise, but the franchisor has the right to refuse such a transfer for good cause [p.136]. Good cause includes, but is not limited to, specified reasons outlined in the document.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.138]. Additionally, the franchisor can terminate the agreement if you fail to comply with any lawful provision of the franchise agreement and do not cure such failure within a reasonable time frame, which cannot exceed 30 days [p.135(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on estimated initial investments and ongoing costs but does not provide specific requirements regarding net worth or liquid capital needed to qualify as a franchisee.
Do I get an exclusive or protected territory?
You do receive territorial rights and protections within your designated territory [p.38], but these are subject to certain exceptions. For instance, the franchisor retains the right to operate other Engineering For Kids Businesses or grant franchises in your territory under specific conditions [p.38]. Additionally, you may be subject to competition from large accounts that the franchisor services directly or through third parties without compensating you [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides training programs run by Jonathan Hayes, who has over 20 years of experience in education franchising. This includes franchisee training and development, as well as the creation of processes, manuals, and support resources [p.29]. However, specific details about ongoing support are not provided in these excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if you are purchasing one. For other outlets, they may provide possible performance under certain circumstances, but this is not a warranty or guaranty of your results [p.48, p.94]. Additionally, the document includes some financial performance information based on similar franchises, though it notes that individual results may differ [p.49].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and provide Programs and sell Authorized Products as specified by the franchisor. You may also offer and provide approved Special Event Services at customers' homes or other facilities with the franchisor's approval [p.36]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing elsewhere [p.3, p.64].