Is Engineering For Kids obligated to establish a Brand Fund?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
filiate-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; provided, however that moneys that we or our affiliates spend on activities, materials or products to advertise and promote the System and Businesses (which may include costs for the System website, Online Sites, and other on-line advertising (other than advertising primarily targeted toward the sale of franchises) will be credited towards our or our affiliates' contribution obligations.
9.3. Brand Fund
- 9.3.1. We have the right, but not the obligation, to establish, maintain and administer a system-wide advertising, marketing, promotional, and brand fund ("Brand Fund", or such other name as we may designate) for the "Engineering For Kids" brand and Businesses. As of the Effective Date, we have a Brand Fund in effect.
- 9.3.2. We have the right to determine the proper operation and other decisions of the Brand Fund. We may use your contributions and any earnings on the Brand Fund for any costs associated with advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses generally and the "Engineering For Kids" brand name and System, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more Online Sites, social media/networking and other digital media); direct mail advertising; market research, including secret customers and customer satisfaction surveys; employing advertising and/or public relations agencies; purchasing promotional items; conducting and administering promotions, contests, giveaways, public relations events, community involvement activities, etc.; providing promotional and other marketing materials and services to our franchisees; and on materials and/or services designed to promote the brand and employment opportunities in order to facilitate selection and hiring of qualified staff. We have the right to deduct from the Brand Fund 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. We have the right to direct all marketing programs, with the final decision over creative concepts, materials, and media used in the programs and their placement.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids is not obligated to establish a Brand Fund. The FDD states that Engineering For Kids has the right, but not the obligation, to establish, maintain, and administer a system-wide advertising, marketing, promotional, and brand fund, referred to as the "Brand Fund".
However, as of the effective date of the 2025 FDD, Engineering For Kids does have a Brand Fund in effect. Engineering For Kids has the right to determine the proper operation and other decisions of the Brand Fund. They may use franchisee contributions and any earnings on the Brand Fund for costs associated with advertising, marketing, public relations, and/or promotional programs and materials, and any other activities they believe would benefit Franchised Businesses generally and the "Engineering For Kids" brand name and System.
Engineering For Kids can deduct 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. Engineering For Kids does not guarantee that franchisees will benefit from the Brand Fund in proportion to their contributions to the Brand Fund. All contributions to the Brand Fund will be deposited in an account separate from Engineering For Kids' other funds and will not be used to defray any of their general operating expenses, except for reasonable administrative costs and overhead.