What item in the Engineering For Kids Disclosure Document covers advertising obligations?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
o require you to discontinue the use of any advertising or marketing materials.
We may periodically require you to participate in and comply with special promotional activities for Engineering For Kids Businesses generally or in specific geographic areas or for specific types of venues. You must bear your own costs of participating locally in such promotions. (Franchise Agreement, Section 9.5)
We may periodically require you to participate in and comply with special promotional activities for Engineering For Kids Businesses generally or in specific geographic areas or for specific types of venues. You must bear your own costs of participating locally in such promotions. (Franchise Agreement, Section 9.7)
"Online Sites" (as defined below) are considered as "advertising" under the Franchise Agreement, and are subject (among other things) to our review and prior written approval before they may be used (as described above). As used in the Franchise Agreement, the term "Online Site" means one or more related documents, designs, pages, or other communications that can be accessed through electronic means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, You Tube, Google Plus, Pinterest, etc.), blogs, vlogs, applications to be installed on mobile devices (for example, iPad or Android apps), and other applications, etc. You may neither establish nor permit any other party to establish an Online Site relating to refers to the Engineering
For Kids Business, Proprietary Marks, us, or the System. Additionally, you may not offer, promote, or sell any products or services, or make any use of the Proprietary Marks, through the Internet or an Online Site without our prior written approval. If we decide to grant our consent, we have the right to require that you adhere to certain rules and standards concerning any Online Site. These may include: (1) before establishing any Online Site, you must submit to us, for our prior written approval, a sample of the proposed Online Site, including its domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including meta tags), in the form and manner we may require; (2) you must not use or modify an Online Site without our prior written approval; (3) you must comply with the standards and specifications for Online Sites that we may periodically prescribe in the Manuals or otherwise in writing; (4) if we require, you must establish hyperlinks to our Online Site and other Online Sites; and (5) we may require you to make us the sole administrator (or co-administrator) of any social networking pages that you maintain or that are maintained on your behalf.
Brand Development Council
The Brand Development Council (BDC) is made of up franchisees from all over the EFK network who volunteer their time in an effort to meet goals and initiatives for the betterment of Engineering For Kids. The primary goal of the BDC is to grow the brand through world class student experience and innovative programs. They work to promote and facilitate the growth of the franchise system by elevating best practices, initiating projects based on feedback from franchise owners and working directly with franchisees from the network to accomplish these projects. The council's authority will be advisory only. We will have the right to dissolve or change the franchise advisory council.
Computer System
You must buy (or lease) and maintain a computer system. The computer system will consist of certain hardware and software, as well as peripheral devices (such as printers). We have the right to specify the brands, types, makes, and models of your Computer System. You will have to abide by our requirements concerning the Computer System, which currently require running Windows 10 or 11 and certain other hardware and software and related customer registration and payment functions, and merchant and credit card processing gateway services (these will be part of a website interface that customers will use to sign up and pay for classes with your Franchised Business). We estimate that the costs associated with computers will be: (1) $1,000 to $2,000 to purchase or lease the required computer system for office computer system; (2) $150 to $200 as a one-time set-up to the vendor that will provide credit card processing gateway software and services; and (3) $2,600 to $4,500 for laptop computers and tablets used in instruction (for a total of estimate of $3,750 to $6,700).
This equipment will be used for recording all sales and related activities, Gross Sales, and customer information.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, Item 11 and section 9.3 within Item 23 outline the franchisee's advertising obligations. Item 11 discusses the franchisor's assistance, advertising, computer systems, and training, noting that Engineering For Kids may require franchisees to participate in promotional activities, bearing their own local costs. It also states that online sites are considered advertising and are subject to the franchisor's review and approval.
Section 9.3 of Item 23 discusses the Brand Fund, which Engineering For Kids has the right to establish and maintain for system-wide advertising and marketing. The franchisor decides how the Brand Fund operates and uses contributions for advertising, marketing, public relations, online marketing, and promotional materials. Engineering For Kids can deduct 15% of the Brand Fund for administration and management.
For a prospective Engineering For Kids franchisee, this means they must allocate funds for local promotional activities and adhere to the franchisor's guidelines for online advertising. They may also be required to contribute to the Brand Fund, without a guarantee of proportional benefit. Understanding these obligations is crucial for budgeting and marketing strategy.