Can the Engineering For Kids Brand Fund be used for public relations events?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
During any periods that the Brand Fund is in effect, you must contribute the amounts that we specify to the Brand Fund as described in the first paragraph above under "Ongoing Advertising". 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. We have the right to deduct from the Brand Fund 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. We have the right to direct all marketing programs, with the final decision over creative concepts, materials and media used in the programs and their placement. The Brand Fund contributions may be used for national, regional and/or local advertising activities and may take place in a variety of media (including television, radio, and print).
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 can be used for public relations events. The document specifies that Engineering For Kids may use contributions and any earnings on the Brand Fund for costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials. These activities are intended to benefit the franchised businesses and the Engineering For Kids brand and system generally.
Specifically, the Brand Fund can cover costs related to conducting and administering promotions, contests, giveaways, public relations events, and community involvement activities. It can also be used for employing advertising and/or public relations agencies. This means that Engineering For Kids franchisees could potentially benefit from public relations events funded by the Brand Fund, which could increase brand awareness and attract more customers.
The franchisor has the right to direct all marketing programs, including the final decision over creative concepts, materials, and media used in the programs and their placement. The Brand Fund contributions may be used for national, regional, and/or local advertising activities and may take place in a variety of media. While the Brand Fund can be used for public relations events, Engineering For Kids has the right to stop collecting and disbursing advertising contributions and terminate the Brand Fund at any time, but not until all monies in the fund have been expended for marketing purposes.
During the last fiscal year, the Brand Fund expenditures were allocated with 70% spent 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. Prospective franchisees should consider how the Brand Fund is managed and utilized, as it directly impacts the marketing and promotional efforts supporting their Engineering For Kids franchise.