Do you want to open an education related business by buying Young Engineers franchise? If YES, here is how much it cost to open Young Engineers franchise successfully. If you are looking towards opening a Young Engineers Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Young Engineers was founded in 2008 and they began franchising in 2008, about 12 years ago. The founder and current CEO of the company is Amir Asor and they have their corporate head office at 6022 W. Maple Rd., #403 West Bloomfield, MI 48322, USA.
Young Engineers also provides franchising opportunities and as of the 2017 Franchise Disclosure Document, there are 14 franchised e2 Young Engineers locations in the USA. Based on 2017 FDD data, e2 Young Engineers has franchise locations in 9 states. The largest region is the West with 5 franchise locations.
Operating in over 50 countries, Young Engineers Franchise offers a variety of STEM LEGO® based after-school programs, that combine Education + Entertainment (Edutainment). We have developed unique educational programs for children aged 4-15 years old, that you can easily operate to establish a successful and meaningful franchise business.
Our classes focused on science, technology, engineering, math (STEM), through fun and inspiring learning experience. They are endorsed by the European Union Commission, while also aligned to the U.S common core standards.
Young Engineers has developed a simple and straightforward approach to an education business that is easy to learn. You will benefit from full training with everything required to successfully start and grow a successful children’s education business. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open a Young Engineers Franchise
1. Initial Investment Range: $36,400 – $59,183
2. Franchise Fee: $25,000
3. Royalty Fee: 6 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Young Engineers and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Young Engineers if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Young Engineers if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Young Engineers is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10% off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is 6 years. If requirements are met, franchisees can renew for one additional term of 4 years.
- Financial Assistance: Young Engineers has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Initial Investment: $36,400 – $59,183
- Net-worth Requirement: $35,000
- Liquid Cash Requirement: $33,500
- Total Investment: $41,400 to $64,183
- Ongoing Initial Franchise Fee: $25,000 – $25,000
- Ongoing Royalty Fee: 7%+
- Ad Royalty Fee: 2%