What is the purpose of Engineering For Kids combining the purchasing power of all Businesses?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
We may enter into arrangements with manufacturers of Proprietary Materials, Authorized Products, supplies and materials as well as equipment (together "Products") to make those Products available to Engineering For Kids Businesses at favorable prices and other terms. If so, we will use our best efforts to maintain purchasing arrangements for Products throughout the term of this Agreement, although we do not represent or guarantee that Products will be available on any specific terms. In order for us to negotiate favorable arrangements with suppliers of Products, it is beneficial for all Engineering For Kids Businesses to combine their purchasing power. Accordingly, if we establish these types of arrangements, you must purchase all of your requirements of Products from the suppliers with whom we have established purchasing programs for Engineering For Kids Businesses. You agree to purchase Products solely for the operation of your Franchised Business and conducting Programs and not for use in any other business or resale or redistribution to any other party.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES\ (FDD pages 19–24)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, combining the purchasing power of all Engineering For Kids businesses enables the franchisor to negotiate favorable arrangements with suppliers of products. These products include Proprietary Materials, Authorized Products, supplies, materials, and equipment.
For a prospective franchisee, this means that Engineering For Kids aims to secure better prices and terms on essential business supplies by leveraging the collective buying power of its franchise network. Franchisees are generally required to purchase these products from suppliers that Engineering For Kids has established purchasing programs with. This requirement ensures that Engineering For Kids can maintain its negotiated favorable arrangements.
However, franchisees are obligated to purchase products solely for operating their franchised business and conducting programs, and not for resale or use in any other business. While Engineering For Kids commits to using its best efforts to maintain these purchasing arrangements, it does not guarantee that products will be available on specific terms.