What is the purpose of the payments Engineering For Kids receives from suppliers?

According to the 2025 Engineering For Kids FDD, Engineering For Kids may enter into arrangements with suppliers of program supplies, materials, and equipment, referred to as "Products," to make these Products available to franchisees at favorable prices. To negotiate these favorable arrangements, Engineering For Kids requires franchisees to purchase all their requirements of Products from these designated suppliers, except as otherwise provided. Franchisees must purchase Products solely for operating their franchised business and conducting Programs, not for resale or redistribution.

Subject to applicable law, Engineering For Kids may receive payments from these suppliers in the form of rebates, commissions, or other payments based on franchisee purchases. These payments are intended to compensate Engineering For Kids for the cost of negotiating and maintaining these purchasing arrangements with the suppliers.

The FDD states that Engineering For Kids is not obligated to remit these funds to the franchisees, subject to applicable laws. This means that Engineering For Kids retains these payments to cover its expenses in managing the supplier relationships and ensuring favorable terms for the franchisees. This arrangement is common in franchising, where the franchisor leverages the collective buying power of its franchisees to negotiate better deals with suppliers and is compensated for this service.