Engineering For Kids logo

Engineering For Kids Franchise

Audited Financials
EducationEst. 2009Richmond Hill, CA
www.engineeringforkids.com

Risk Score

Pending analysis

Investment Range

$71,200 - $139,750

Franchise Fee

$27,000

Total US Locations

23

Business Summary

Engineering for Kids International, LLC offers educational activities, specifically seminars, classes, camps, workshops, conferences, and programs focused on math, science, technology, and engineering. These programs are delivered using a specific business system and the 'Engineering For Kids' trademarks. The business operates under a 'Learning Center Based Business' format, requiring franchisees to establish a permanent instruction facility and office (EFK Center Location), and also conduct programs at various third-party sites like community centers, schools, and after-school care centers. Additionally, franchisees can offer 'Special Events Services' for children's parties and other celebratory events at customers' homes or other facilities.

Corporate History

The 'Engineering for Kids' franchise system was originally developed and operated by a predecessor company, Engineering for Kids, Inc. (EFKI), which was formed in February 2009 and operated the first Engineering For Kids Business. The predecessor, EK Franchising Company (EKFC), started offering franchises for Engineering For Kids Businesses in September 2011. Engineering for Kids International, LLC, the current franchisor, was formed in Delaware in October 2020 and acquired the 'Engineering for Kids' franchise system and related assets from its predecessors on October 31, 2020. Engineering for Kids International, LLC began offering franchises in the United States in August 2021.

Financial Overview

Investment Range

$71,200 - $139,750

Franchise Fee (Low)

$27,000

Franchise Fee (High)

$30,000

Royalty %

7%

Marketing %

4%

Equipment Costs (Low)

$19,150

Equipment Costs (High)

$67,200

Working Capital

$7,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Engineering for Kids International, LLC appears to be financially stable, showing positive net income for the past three years. The independent auditor has issued an unqualified opinion on the financial statements, indicating they are presented fairly. There are no specific 'going concern' warnings or major financial difficulties noted by the auditors. The company manages accounts receivable with an allowance for credit losses and believes its credit risk is limited. Amounts due to a related party were substantial in 2023 but were reduced to zero in 2024, with a positive 'Due from related party' balance in 2024.

Financing Details

Engineering for Kids International, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's note, lease, or other financial obligation.

Performance Metrics

Total US Locations

23

Franchised Units

23

Corporate Units

0

Avg Square Footage

1,200

Franchising Since

2011

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew, Engineering for Kids International, LLC franchisees must provide written notice between 6 and 12 months before their agreement expires. They must satisfy all monetary obligations to the franchisor and its affiliates, be in full compliance with the franchise agreement, and not be in material default. Franchisees are required to sign a general release of claims and the franchisor's then-current form of franchise agreement, which may contain different terms. They must also pay a renewal fee of $3,500, complete any additional required training, and make capital expenditures to upgrade their Authorized Locations to meet current brand standards.

Training & Support Program

Franchisor Assistance

Before opening, Engineering for Kids International, LLC provides franchisees with standard site selection guidelines, general design plans, and basic layouts. The franchisor reviews proposals for EFK Center Locations and provides specifications for equipment, furnishings, fixtures, and signage. Franchisees receive initial training and materials for up to two individuals at no additional charge. They also get access to the 'Brand Excellence Manual' and advice for their initial marketing campaign. After opening, ongoing support includes periodic inspections of the franchised business and the option to attend additional mandatory or optional training programs. The franchisor also provides information on new developments in operations, management, and marketing, and administers the Brand Fund and, if established, a Regional Fund. Limited on-site assistance is available if resources permit.

Initial Training Hours

83

Training Location

Training is primarily conducted virtually (remote training) or at designated locations such as conference facilities. It may also include on-site training at a host Engineering For Kids program.

Ongoing Support

After opening, Engineering for Kids International, LLC provides ongoing support through periodic inspections of the franchised business and evaluations of services and products. Franchisees may be required to attend additional mandatory or optional training programs, with fees potentially applied for these. The franchisor makes information on new developments in operations, management, and marketing available through various channels like printed materials, online forums, meetings, and individual counseling. Limited on-site assistance is also offered if resources are available. The franchisor administers the Brand Fund and any Regional Funds. Franchisees are also required to participate in and bear the costs of special promotional activities and may need to attend annual conferences.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Full-Time

Territory Type

Protected

Territory Size Requirements

Engineering for Kids International, LLC defines a standard territory as a geographic area containing approximately 100 schools with grades including some or all of kindergarten through eighth grade.

Staffing Notes

Engineering for Kids International, LLC requires that an Operating Principal (an individual owner) dedicate full-time attention to the day-to-day supervision and operation of the franchised business. If the Operating Principal is not full-time, a qualified and trained manager must be employed to assume daily operational responsibilities. Franchisees are solely responsible for all employment decisions, including hiring, firing, compensation, and employee discipline, but must comply with all applicable federal, state, and local employment laws. All employees, especially instructors, must meet any required state and local licenses or certifications, and franchisees must ensure their staff provides competent, courteous, and knowledgeable service in line with brand standards.