Is an Engineering For Kids franchisee required to use designated and approved suppliers?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES**
You must operate the Business according to our System standards. System standards regulate, among other things: the services you may provide, and the types, models, and brands of equipment, furnishings, and signs you must use in operating the Business; and designated and approved suppliers.
General Requirements
Authorized Services and Items
At all times during the term of the Franchise Agreement, you may offer customers only the services that we have expressly authorized in writing for Businesses to offer, and in doing so you will use only the Proprietary Materials, any other curriculum materials, and standards that we have approved for use in conducting the approved services. We have the right to change the authorized Programs and other services (provided that offering educational programs in the fields of math, science, technology, and engineering will remain as "Core Programs"), and we may designate specific Programs or services as optional or mandatory. We have the right to approve some Programs, services, equipment and other items for certain franchisees and not others based on legitimate business reasons.
We may develop or approve of Programs in addition to Core Programs. These other programs may in the future be deemed to be Core Programs, in which case they will become mandatory for you to offer or operate in connection with the Franchised Business; or these Programs will remain ancillary Programs, in which case they will be optional for you to offer or operate in connection with the Franchised Business. We may limit the number of ancillary Programs you conduct at the Franchised Business in addition to the Core Programs. You must not offer any Programs or services in connection with the Franchised Business that are not approved Programs or services. We may revoke our approval of any Program, curriculum and materials, and if we do so, you will be required to discontinue further offer or use of the disapproved Programs and materials. We identify the approved Programs in our Manual and related materials (we refer to the list of approved program offerings as our "Curriculum Catalog").
Without limiting the information above that applies generally to the Programs, we have developed virtual programs as an additional method of conducting business that may be offered from time to time as we authorize. The virtual programs are not intended to be permanent replacement for in-person Programs and Engineering for Kids Businesses must resume offering in-person Programs as we require. We have the right to discontinue any or all virtual programs. We may designate some or all virtual programs as Core Programs or to make them optional.
Suppliers and Specifications in General
We have the right to require that all Proprietary Materials (which may include course materials, supplies and equipment designed and prepared according to our proprietary standards), Authorized Products (which may include other educational materials and other related products for sale to customers), and any other services, products, supplies, materials and equipment that you use in the operation of the Franchised Business or resell through your Franchised Business: (a) meet specifications that we establish from time to time; and/or (b) be purchased only from suppliers that we have expressly approved;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES\ (FDD pages 19–24)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees are required to adhere to system standards, which include using designated and approved suppliers for certain goods and services. Engineering For Kids has the right to require that Proprietary Materials, Authorized Products, and other services, products, supplies, materials, and equipment meet their specifications, be purchased only from approved suppliers, or be purchased from a single source, which could include Engineering For Kids or its affiliates. These requirements will be published in the Manual.
For other goods, services, supplies, fixtures, equipment, and inventory, franchisees must comply with Engineering For Kids' standards and specifications. While Engineering For Kids has not currently designated any mandatory suppliers for these items, this policy can change. Franchisees are obligated to use only the Proprietary Materials and curriculum materials approved by Engineering For Kids for the authorized services they offer. If a franchisee wishes to use unapproved programs, curriculum, or purchase from unapproved suppliers, they must submit a written request for approval, potentially incurring inspection and testing costs.
Collectively, purchases and leases from Engineering For Kids, designated and/or approved suppliers, or in accordance with their specifications, account for approximately 90% of a franchisee's overall purchases and leases when establishing the Franchised Business, and 30%-40% when operating the Franchised Business. Engineering For Kids reserves the right to collect rebates from suppliers based on franchisee purchases. Although the Franchise Agreement does not specify a time frame for supplier approval, Engineering For Kids estimates that they will notify franchisees of approval or disapproval within 30 days of receiving a written request, but guarantees notification within 60 days.