How will Engineering For Kids administer the Regional Fund, unless otherwise designated?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4.5. Unless we designate otherwise in writing when we establish a Regional Fund, we will administer the Regional Fund in the same manner as described in Section 9.3 regarding the System Creative Fund.
9.3. Brand Fund
- 9.3.1. We have the right, but not the obligation, to establish, maintain and administer a system-wide advertising, marketing, promotional, and brand fund ("Brand Fund", or such other name as we may designate) for the "Engineering For Kids" brand and Businesses.
As of the Effective Date, we have a Brand Fund in effect.
- 9.3.2. We have the right to determine the proper operation and other decisions of the Brand Fund.
We may use your contributions and any earnings on the Brand Fund for any costs associated with advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses generally and the "Engineering For Kids" brand name and System, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more Online Sites, social media/networking and other digital media); direct mail advertising; market research, including secret customers and customer satisfaction surveys; employing advertising and/or public relations agencies; purchasing promotional items; conducting and administering promotions, contests, giveaways, public relations events, community involvement activities, etc.; providing promotional and other marketing materials and services to our franchisees; and on materials and/or services designed to promote the brand and employment opportunities in order to facilitate selection and hiring of qualified staff.
We have the right to deduct from the Brand Fund 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund.
We have the right to direct all marketing programs, with the final decision over creative concepts, materials, and media used in the programs and their placement.
We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
- 9.3.3. We will deposit all contributions to the Brand Fund in an account separate from our other funds and will not use them to defray any of our general operating expenses, except for reasonable administrative costs and overhead we incur in activities reasonably related to the administration of the Brand Fund or the management of Brand Fund-supported programs (including full or partial salaries of our personnel who devote full- or part-time services to Brand Fund activities).
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, unless Engineering For Kids designates otherwise in writing when establishing a Regional Fund, they will administer the Regional Fund in the same manner as the System Creative Fund, as detailed in Section 9.3 of the FDD.
Engineering For Kids has the right, but not the obligation, to establish, maintain, and administer a system-wide advertising, marketing, promotional, and brand fund for the Engineering For Kids brand and Businesses. As of the Effective Date, there is a Brand Fund in effect. Engineering For Kids has the right to determine the proper operation and other decisions of the Brand Fund.
Engineering For Kids may use franchisee contributions and any earnings on the Brand Fund for any costs associated with advertising, marketing, public relations, and/or promotional programs and materials, and any other activities they believe would benefit Franchised Businesses generally and the Engineering For Kids brand name and System. They can deduct 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. Engineering For Kids has the right to direct all marketing programs, with the final decision over creative concepts, materials, and media used in the programs and their placement. However, Engineering For Kids does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions to the Brand Fund.
Engineering For Kids will deposit all contributions to the Brand Fund in an account separate from their other funds and will not use them to defray any of their general operating expenses, except for reasonable administrative costs and overhead they incur in activities reasonably related to the administration of the Brand Fund or the management of Brand Fund-supported programs, including full or partial salaries of their personnel who devote full- or part-time services to Brand Fund activities.