What is the minimum amount an Engineering For Kids franchisee must spend on local advertising?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ion 9.4 below); and/or (c) spend amounts on local advertising (as described in Section 9.5 below) in such amounts as we designate under Section 9.2.1 below, provided that the amounts that we require will not, in the aggregate, exceed an amount equal to (i) four percent (4%) of the Gross Sales of the Franchised Business during the preceding Period, plus (if applicable) (ii) the amount by which the Minimum Local Ad Spend (as defined below) exceeds your then-current Local Ad Percentage Spend (as defined below) for the Period (the "Advertising Obligation").
- 9.2.1. We will specify the respective portions of the Advertising Obligation that you must contribute to the Brand Fund, contribute to any Regional Fund, and/or spend directly on local advertising and promotion, and we may adjust the respective portions from time to time. As of the Effective Date, the Advertising Obligations are allocated as: (a) contributions in the amount of two percent (2.0%) of your Gross Sales to the Brand Fund; and (b) expenditures on local advertising (in accordance with Section 9.5 below) in an amount equal to the greater of two percent (2.0%) of your Gross Sales for that Period (the "Local Ad Percentage Spend") or One Hundred Dollars ($100) (the "Minimum Local Ad Spend").
- 9.2.2. You understand that the Advertising Obligations are the amounts that we may require you to contribute or spend, and that these required amounts may not be sufficient in all cases to develop or maintain adequate exposure to the services offered by your Franchised Business. You may, in your business judgment, spend additional amounts on advertising to promote your Franchised Business and the services you offer in your Territory. If you spend monies on local advertising in excess of the amounts that we require as part of the Advertising Obligations, the additional amounts will not be applied to, or otherwise reduce, your obligations to contribute amounts to the Brand Fund or, if applicable, a Regional Fund for any Period.
9.2.3. For all company-owned or affiliate-owned Engineering For Kids Businesses, we or our affiliates will contribute to the Brand Fund and/or a Regional Fund on the same basis as franchisees;
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees have specific advertising obligations. Engineering For Kids requires franchisees to spend a minimum amount on local advertising. This amount is determined by whichever is greater: two percent of the franchisee's gross sales for the period or $100. This is referred to as the 'Minimum Local Ad Spend'.
Engineering For Kids specifies that these local marketing expenditures must be made on a monthly basis, beginning on the Opening Date of the franchise. Franchisees may be required to submit documentation to verify compliance with this minimum spending obligation. The franchisor also has the right to designate the types of expenditures that will or will not count toward the minimum annual spending requirement in the Manual.
It's important to note that while Engineering For Kids mandates this minimum spending, it might not be sufficient to adequately promote the franchise. Franchisees have the option to spend additional amounts on advertising at their own discretion. However, any additional spending beyond the required minimum will not reduce the franchisee's obligations to contribute to the Brand Fund or any Regional Fund.