What happens to the monies in an Engineering For Kids Regional Fund upon termination?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4.6. Although once established, each Regional Fund is intended to be of perpetual duration, we maintain the right to terminate any Regional Fund. A Regional Fund will not be terminated, however, until all monies in that Regional Fund have been expended for marketing and/or promotional purposes.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, although each Regional Fund is intended to be of perpetual duration once established, Engineering For Kids maintains the right to terminate any Regional Fund. However, a Regional Fund will not be terminated until all monies in that Regional Fund have been expended for marketing and/or promotional purposes.
This means that if Engineering For Kids decides to terminate a Regional Fund, the money in that fund must be used for marketing and promotional activities before the fund is officially closed. This protects franchisees by ensuring that the contributions they made to the Regional Fund are used as intended, even if the fund is discontinued.
Prospective franchisees should consider this a positive aspect, as it provides some assurance that their marketing contributions will be utilized for their intended purpose. However, franchisees should also be aware that Engineering For Kids has the right to terminate a Regional Fund, which could impact regional marketing strategies and require adjustments to local marketing efforts.