Why is it beneficial for all Engineering For Kids Businesses to combine their purchasing power?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
In order for us to negotiate favorable arrangements with suppliers of Products, it is beneficial for all Engineering For Kids Businesses to combine their purchasing power. Accordingly, except as provided below, you must purchase all of your requirements of Products from the suppliers with whom we have established purchasing programs for Engineering For Kids Businesses. You agree to purchase Products solely for the operation of your Franchised Business and conducting Programs and not for use in any other business or resale or redistribution to any other party. Subject to applicable law, we may earn money from the suppliers based on your purchases in the form of rebates, commissions, or other payments. You acknowledge that these payments compensate us for the cost of negotiating and maintaining the purchasing arrangements with the suppliers and that, subject to applicable laws, we have no obligation to remit the funds to you.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, it is beneficial for all Engineering For Kids businesses to combine their purchasing power in order for Engineering For Kids to negotiate favorable arrangements with suppliers of products. These products include program supplies, materials, and equipment. Combining purchasing power allows Engineering For Kids to potentially secure better prices and terms from manufacturers.
As a franchisee, you are generally required to purchase all your product requirements from suppliers that Engineering For Kids has established purchasing programs with, with some exceptions. These purchases are solely for operating the franchised business and conducting programs, not for resale or redistribution.
Engineering For Kids may receive compensation from suppliers based on franchisee purchases in the form of rebates, commissions, or other payments. These payments are intended to compensate Engineering For Kids for the costs associated with negotiating and maintaining these purchasing arrangements, and Engineering For Kids is not obligated to remit these funds to the franchisee, subject to applicable laws.