Can Engineering For Kids approve a supplier for only a certain brand or brands?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
factors relating to the price and quality of the products or services and the reliability of the supplier. We may approve a single supplier for any brand and may approve a supplier only as to a certain brand or brands. We may concentrate purchases with one or more suppliers to obtain the lowest prices or the best advertising support or services for any group of Businesses in the System. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, standards of service, including prompt attention to complaints, and concentration of purchases, as described above. Approval may be provisional, pending our further evaluation of the proposed supplier. We do not provide written criteria for approving suppliers to our franchisees, but we will consider the factors and issues described above in evaluating potential suppliers. We may formulate and modify standards and specifications based on our, and our affiliates' and our franchisees' experience. We may designate ourselves or an affiliate as an exclusive or nonexclusive supplier of any goods or services used in connection with operating the Businesses.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES\ (FDD pages 19–24)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has the authority to approve a single supplier for any brand and may approve a supplier only as to a certain brand or brands. This means that Engineering For Kids franchisees may be required to purchase specific items from suppliers that are only approved for particular brands, limiting the franchisee's choice of suppliers.
Engineering For Kids may concentrate purchases with one or more suppliers to obtain the lowest prices or the best advertising support or services for any group of Businesses in the System. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, standards of service, including prompt attention to complaints, and concentration of purchases. Approval may be provisional, pending further evaluation of the proposed supplier.
Engineering For Kids does not provide written criteria for approving suppliers to franchisees, but they will consider factors and issues described in Item 8 in evaluating potential suppliers. Engineering For Kids may formulate and modify standards and specifications based on their, and their affiliates' and franchisees' experience. They may designate themselves or an affiliate as an exclusive or nonexclusive supplier of any goods or services used in connection with operating the Businesses.