Can Engineering For Kids charge the Brand Fund for advertising services they provide?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, we may charge the Brand Fund fees at reasonable market rates for advertising, marketing, and promotional services that we ourselves actually provide in lieu of engaging third-party agencies to provide such services.
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 Franchise Disclosure Document, Engineering For Kids can charge the Brand Fund for advertising, marketing, and promotional services that they themselves provide. This is permitted if Engineering For Kids provides these services instead of hiring a third-party agency. The fees charged to the Brand Fund must be at reasonable market rates.
This means that Engineering For Kids franchisees could indirectly be paying Engineering For Kids for advertising services through their contributions to the Brand Fund. It is a common practice in franchising for franchisors to manage and direct the advertising funds, but it's important for franchisees to understand how these funds are being used.
Prospective Engineering For Kids franchisees should inquire about the specific instances where Engineering For Kids has charged the Brand Fund for its own services, the rates charged, and how these rates compare to those of third-party agencies. Understanding these details can help a franchisee assess the transparency and fairness of the Brand Fund's management.