For what authorized purposes are Engineering For Kids advertising contributions intended?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
sing, public relations, marketing, market research, and promotional campaigns. We may, however, spend the advertising contributions only for authorized purposes. 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. Any promotional materials produced with Brand Fund monies will be made available to you at a reasonable cost, and the proceeds of such sales will also be deposited in the Brand Fund account.
The Advertising contributions belong to the Brand Fund; they are not our asset. We are not required to have an independent audit of the System Fund completed. We will make available an unaudited statement of contributions and expenditures for the Brand Fund 90 days after the close of our fiscal year to franchisees that make a written request for a copy. With respect to the maintaining, operating, or administering the Brand Fund, we are not a trustee or fiduciary and assume no other direct or indirect liability or obligation to you.
At any time, we may stop collecting and disbursing advertising contributions and terminate the Brand Fund. It will not be terminated, however, until all monies in the fund have been expended for marketing purposes.
The Brand Fund will not expend any money for advertising that is principally a solicitation for the sale of franchises. We do not currently operate any Businesses, but our affiliate currently operates two Businesses. Our current policy is that we or our affiliate. will contribute to the Brand Fund in the same manner as franchisees; however, we or our affiliate may count other marketing costs that we incur in connection with promoting the Engineering For Kids brand and products (such as towards maintaining the System website and other Online Sites) towards the required advertising contribution.
During the last fiscal year, the Brand Fund expenditures made were for, among other things, 70% on marketing promotional content and marketing support, 20% on digital assets, and 10% on the website. There was no surplus or deficit for the Brand Fund.
Regional Fund. We have the right to designate any geographical area for purposes of establishing a regional marketing und ("Regional Fund"). The purpose of a Regional Fund is to conduct marketing campaigns for the Engineering For Kids Businesses located in that region. If a Regional Fund for the area in which your Franchised Business is located has been established at the time you begin operations, you must immediately become a member of the Regional Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–36)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, advertising contributions are intended to maximize general public recognition and acceptance of the Proprietary Marks for the benefit of the System as a whole. These contributions can be used for local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials. This includes advertising campaigns in various media, online marketing, direct mail, market research, employing agencies, purchasing promotional items, and conducting promotions.
The Brand Fund, which holds these contributions, may also cover costs associated with maintaining the Engineering For Kids brand, including the System website and other online sites. The franchisor has the right to direct all marketing programs and make final decisions on creative concepts and materials. The Brand Fund will not be used for advertising that primarily solicits the sale of franchises.
During the last fiscal year, the Brand Fund allocated its expenditures with 70% going to marketing promotional content and marketing support, 20% to digital assets, and 10% to the website. Franchisees should note that the franchisor need not make expenditures that are equivalent or proportionate to their contributions, nor ensure direct or pro rata benefits from advertising. The franchisor also has the right to deduct 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund.