Does an Engineering For Kids franchisee gain ownership of the Proprietary Marks through their use?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that: (a) the Proprietary Marks serve to identify our services and the businesses operating under the System; (b) your use of the Proprietary Marks under this Agreement does not give you any ownership interest in them; and (c) all goodwill associated with and identified by the Proprietary Marks inures exclusively to our benefit and is our property. Upon the expiration or termination of this Agreement, no monetary amount will be attributable to goodwill associated with your activities as a franchisee under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, franchisees do not acquire any ownership interest in the Proprietary Marks through their use of them. The FDD states that the Proprietary Marks serve to identify Engineering For Kids' services and the businesses operating under its system. Any goodwill associated with the Proprietary Marks exclusively benefits Engineering For Kids and remains their property. Upon the expiration or termination of the Franchise Agreement, the franchisee will not be entitled to any monetary compensation for goodwill associated with their activities as a franchisee.
As an Engineering For Kids franchisee, you are only authorized to use the Proprietary Marks designated by Engineering For Kids and in the manner they authorize. This use is restricted to the operation and advertising of the franchised business within the designated territory. Franchisees must operate and advertise their business under the name "Engineering For Kids" without any prefixes or suffixes and ensure that the Proprietary Marks are used with the appropriate symbols, such as "®", "™", or "SM", as required by Engineering For Kids.
These stipulations are typical in franchising, where the franchisor retains ownership and control over its trademarks and brand identity. This allows Engineering For Kids to maintain consistency and quality across all franchise locations, protecting the brand's reputation. Franchisees benefit from using a recognized brand but must adhere to the franchisor's guidelines and acknowledge that the brand equity belongs solely to Engineering For Kids.