What is the 'Minimum Local Ad Spend' amount for an Engineering For Kids franchise?
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 Region
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, franchisees must spend a minimum amount on local advertising. Specifically, Engineering For Kids requires franchisees to spend the greater of two percent of their gross sales or $100 on local advertising. This is referred to as the 'Minimum Local Ad Spend'.
This requirement means that even if a franchisee's gross sales are low, they must still spend at least $100 on local advertising. If their gross sales are high enough that two percent of sales exceeds $100, then the franchisee must spend that higher amount. This ensures that all franchisees are actively promoting their Engineering For Kids business within their local territory.
It is important to note that Engineering For Kids may periodically designate the types of expenditures that will or will not count toward this minimum spending requirement, as outlined in the manual. Franchisees must also submit documentation to verify compliance with this spending obligation upon request. This gives Engineering For Kids control over how franchisees are spending their local advertising dollars and ensures that the money is being used effectively to promote the brand.