Are Engineering For Kids advertising contributions intended to benefit the entire system?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising contributions are intended to maximize general public recognition and acceptance of the Proprietary Marks for the benefit of the System as a whole. In administering the Brand Fund, we need not make expenditures for you that are equivalent or proportionate to your advertising contributions or insure that you benefit directly or pro rata from advertising or promotion conducted in connection with the advertising
contributions.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–36)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, advertising contributions are intended to benefit the entire franchise system. Specifically, the FDD states that advertising contributions aim to maximize general public recognition and acceptance of the Engineering For Kids' Proprietary Marks for the benefit of the System as a whole. However, Engineering For Kids does not guarantee that franchisees will directly or proportionally benefit from advertising or promotional activities funded by these contributions.
The Engineering For Kids Brand Fund uses franchisee contributions for various advertising, marketing, and promotional activities at the local, regional, and national levels. These activities include advertising campaigns across different media, online marketing efforts, direct mail advertising, market research, and promotional items. Engineering For Kids has the authority to manage these marketing programs and make final decisions on creative concepts and media usage.
While the Brand Fund is kept separate from Engineering For Kids' other funds, the company can deduct up to 15% of the Brand Fund's contributions for administrative and management purposes. Additionally, Engineering For Kids may provide advertising, marketing, and promotional services themselves, charging the Brand Fund reasonable market rates for these services. Franchisees should recognize that Engineering For Kids has significant control over the Brand Fund and its expenditures, with the ultimate goal of benefiting the entire Engineering For Kids system.