What is the 'Minimum Local Ad Spend' 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 Engineering For Kids' 2025 Franchise Disclosure Document, franchisees are required to spend a certain amount on local advertising. Specifically, the minimum local ad spend is $100. However, the franchisee must spend the greater of two percent of gross sales or $100.
This means that even if a new Engineering For Kids franchise has very low initial sales, they are still obligated to spend at least $100 on local advertising. As the franchise's gross sales increase, the required local ad spend will also increase, ensuring that marketing efforts grow with the business.
Engineering For Kids retains the right to adjust the required contributions to the Brand Fund, Regional Fund, and local advertising, so this allocation may change over time. Franchisees are also free to spend more than the required minimum on local advertising if they believe it is necessary to promote their business effectively.