What funds will Engineering For Kids administer?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
We will administer the Brand Fund and Regional Fund (if we establish a Regional Fund), as described below in this Item. (Franchise Agreement, Sections 9.1 - 9.4)
During any periods that the Brand Fund is in effect, you must contribute the amounts that we specify to the Brand Fund as described in the first paragraph above under "Ongoing Advertising". We may use your contributions and any earnings on the Brand Fund for any costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses and "Engineering For Kids" brand and the System generally, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more websites or other Online Sites (as defined below), social media/networking and other digital media); direct mail advertising; market research and testing, 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 development of, or producing for franchisees, materials and items used in the Businesses for customer viewing and use; 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. The Brand Fund contributions may be used for national, regional and/or local advertising activities and may take place in a variety of media (including television, radio, and print).
(e) Unless we designate otherwise in writing when we establish a Regional Fund, we will administer the Regional Fund in the same manner as described above regarding the System Fund.
During the last fiscal year, the Brand Fund expenditures made were for, among other things, 70% on marketing promotional content and marketing support, 20% on digital assets, and 10% on the website. There was no surplus or deficit for the Brand Fund.
We have the right to stop collecting and disbursing advertising contributions and terminate the Brand Fund, but not until all monies in the fund have been expended for marketing purposes.
The Brand Fund will not expend any money for advertising that is principally a solicitation for the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–36)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, Engineering For Kids administers the Brand Fund and may establish and administer a Regional Fund. The Brand Fund is used for advertising, marketing, public relations, and promotional programs at the local, regional, and national levels to benefit franchisees and the Engineering For Kids brand. Engineering For Kids has the right to deduct 15% of the Brand Fund contributions for administration and management. The Brand Fund contributions may be used for national, regional and/or local advertising activities and may take place in a variety of media (including television, radio, and print). During the last fiscal year, the Brand Fund expenditures made were for, among other things, 70% on marketing promotional content and marketing support, 20% on digital assets, and 10% on the website. There was no surplus or deficit for the Brand Fund.
If Engineering For Kids establishes a Regional Fund, it will administer it in the same manner as the Brand Fund, unless otherwise designated in writing. The purpose of the Regional Fund is to conduct marketing campaigns for Engineering For Kids businesses within a specific region. Franchisees must become members of the Regional Fund if one is established for their area. Franchisees must submit their Regional Contribution to the Regional Fund by electronic funds transfer on the same schedule as their Royalty Fees.
Engineering For Kids has the right to stop collecting and disbursing advertising contributions and terminate the Brand Fund, but not until all monies in the fund have been expended for marketing purposes. The Brand Fund will not expend any money for advertising that is principally a solicitation for the sale of franchises. Any promotional materials produced with Brand Fund monies will be made available to franchisees at a reasonable cost, and the proceeds of such sales will also be deposited in the Brand Fund account.