Who benefits from the Engineering For Kids Brand Fund?
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.
We may use your contributions and any earnings on the Brand Fund for any costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses and "Engineering For Kids" brand and the System generally, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more websites or other Online Sites (as defined below), social media/networking and other digital media); direct mail advertising; market research and testing, 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 development of, or producing for franchisees, materials and items used in the Businesses for customer viewing and use; and on materials and/or services designed to promote the brand and employment opportunities in order to facilitate selection and hiring of qualified staff.
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, the Brand Fund is intended to benefit the Engineering For Kids system as a whole. The funds are used for costs associated with advertising, marketing, public relations, and promotional programs. These programs and materials are designed to benefit franchised businesses and the Engineering For Kids brand generally.
The FDD specifies that Engineering For Kids has the right to use contributions and any earnings on the Brand Fund for activities that it believes would benefit the brand and the franchise system. These activities include advertising campaigns in various media, online marketing, direct mail advertising, market research, promotional items, and public relations events.
While the Brand Fund aims to maximize recognition and acceptance of the Engineering For Kids brand, the FDD clarifies that Engineering For Kids is not obligated to ensure that each franchisee benefits directly or proportionally to their contributions. Promotional materials produced with Brand Fund monies will be made available to franchisees at a reasonable cost, with the proceeds also deposited back into the Brand Fund. This means that while all franchisees contribute to the fund, the benefits they receive may vary, and there's no guarantee of a direct return on their specific contribution.
Engineering For Kids also has the right to deduct 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. The franchisor will deposit all contributions to the Brand Fund in an account separate from its other funds and will not use them to defray any of its general operating expenses, except for reasonable administrative costs and overhead. During the last fiscal year, the Brand Fund expenditures were allocated as follows: 70% on marketing promotional content and marketing support, 20% on digital assets, and 10% on the website.