Can Engineering For Kids designate itself or an affiliate as a supplier?

According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has the right to designate itself or an affiliate as a supplier. Specifically, Engineering For Kids may act as an exclusive or nonexclusive supplier of any goods or services used in connection with operating the Businesses. This gives Engineering For Kids significant control over the supply chain and ensures franchisees adhere to the standards set by the company.

Engineering For Kids can require franchisees to purchase proprietary materials, authorized products, and other services or equipment from approved suppliers, including themselves or their affiliates. These items must meet the specifications established by Engineering For Kids. This requirement helps maintain consistency and quality across all franchise locations.

Currently, none of Engineering For Kids' officers owns an interest in any companies that are vendors or suppliers to franchisees, and neither Engineering For Kids nor any affiliate is an approved supplier of goods or services to franchisees. However, Engineering For Kids reserves the right to receive payments from suppliers in the future, which could create a financial incentive for them to designate themselves or an affiliate as a supplier. Franchisees should be aware that purchases from Engineering For Kids, designated, and/or approved suppliers account for approximately 90% of the initial investment and 30%-40% of ongoing operational purchases.