factual

Does Engineering For Kids currently have a Brand Fund in effect?

Engineering_For_Kids Franchise · 2025 FDD

Answer from 2025 FDD Document

filiate-owned Engineering For Kids Businesses, we or our affiliates will contribute to the Brand Fund and/or a Regional Fund on the same basis as franchisees; provided, however that moneys that we or our affiliates spend on activities, materials or products to advertise and promote the System and Businesses (which may include costs for the System website, Online Sites, and other on-line advertising (other than advertising primarily targeted toward the sale of franchises) will be credited towards our or our affiliates' contribution obligations.

9.3. Brand Fund

  • 9.3.1. We have the right, but not the obligation, to establish, maintain and administer a system-wide advertising, marketing, promotional, and brand fund ("Brand Fund", or such other name as we may designate) for the "Engineering For Kids" brand and Businesses. As of the Effective Date, we have a Brand Fund in effect.
  • 9.3.2. We have the right to determine the proper operation and other decisions of the Brand Fund. We may use your contributions and any earnings on the Brand Fund for any costs associated with advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses generally and the "Engineering For Kids" brand name and System, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more Online Sites, social media/networking and other digital media); direct mail advertising; market research, 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 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. We do not guarantee that you will benefit from the Brand Fund in proportion to your contributions to the Brand Fund.
  • 9.3.3. We will deposit all contributions to the Brand Fund in an account separate from our other funds and will not use them to defray any of our general operating expenses, except for reasonable administrative costs and overhead we incur in activities reasonably related to the administration of the Brand Fund or the management of Brand Fund-supported programs (including full or partial salaries of our personnel who devote full- or part-time services to Brand Fund activities).
  • 9.3.4. We will make available to you, at a reasonable cost, any promotional materials produced with Brand Fund monies, and we will deposit the proceeds of those sales into the Brand Fund account. We are not required to have an independent audit of the Brand Fund completed.

Source: Item 23 — RECEIPTS (FDD pages 53–138)

What This Means (2025 FDD)

According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has the right, but not the obligation, to establish a Brand Fund. As of the effective date of the FDD, Engineering For Kids does have a Brand Fund in effect.

The Brand Fund is used for advertising, marketing, public relations, and promotional programs and materials that benefit franchisees and the Engineering For Kids brand. These activities include advertising campaigns, online marketing, direct mail, market research, promotional items, and public relations events. Engineering For Kids has the right to deduct 15% of the Brand Fund contributions for administration and management of the fund.

Engineering For Kids specifies that franchisees must contribute a portion of their gross sales to the Brand Fund. As of the effective date, franchisees must contribute 2% of their gross sales to the Brand Fund. Engineering For Kids will deposit all Brand Fund contributions in an account separate from their other funds and will not use them to defray any of their general operating expenses, except for reasonable administrative costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.