What is the 'Regional Fund' for Engineering For Kids franchises?
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, the document mentions a 'Regional Fund' but does not specify a fixed percentage or amount that franchisees must contribute. Engineering For Kids retains the discretion to specify the portions of the advertising obligation that franchisees must contribute to the Brand Fund, any Regional Fund, and/or spend directly on local advertising and promotion. These allocations may be adjusted from time to time by Engineering For Kids.
As of the effective date of the FDD, the advertising obligations are allocated as follows: two percent of gross sales to the Brand Fund, and local advertising expenditures equal to the greater of two percent of gross sales or $100. However, the FDD does not provide specific details on how the Regional Fund is calculated or managed, or even if one exists at all.
Prospective franchisees should inquire with Engineering For Kids about whether a Regional Fund is currently in effect for their specific region, what percentage of gross sales is required for the Regional Fund, how the funds are used, and what oversight franchisees have regarding the fund's expenditures. Understanding the specifics of any Regional Fund is essential for budgeting and assessing the overall marketing obligations.