Does Engineering For Kids require contributions to a Brand Fund?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
escribed above.
ITEM 6 OTHER FEES
| Type of Fee (note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fees | The greater of: (a) the Applicable Royalty Rate(s) multiplied by the Gross Sales for the Period, or (b) a Minimum Royalty, which will be $300 per month beginning in the 7th month after you sign the Franchise Agreement. See Remarks for the Applicable Royalty Rates. | Payable monthly (at this time) on or before the 5th day of each subsequent Period (note 2) | The "Applicable Royalty Rates" are (note 2): • 7% of Gross Sales between $0 to $25,000 during the Period, • 6% of Gross Sales between $25,000.01 to $50,000 during the Period, and • 5% of Gross Sales in excess of $50,000 during the Period "Gross Sales" means all of your revenue from operating your Franchised Business, but excluding taxes collected from customers and paid to taxing authority, and customer coupon sales (for which customers do not pay for complimentary or reduced price services or product) and refunds. |
| Advertising Obligations (note 3) • Brand Fund • Regional Fund • Local Advertising expenditures | Maximum: 4% of your Gross Sales, plus (if applicable) the amount that your Minimum Local Ad Spend exceeds your Local Ad Percentage Spend for the month. Currently: • Brand Fund: 2%; |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
Yes, according to Engineering For Kids's 2025 Franchise Disclosure Document, franchisees are currently required to contribute to a Brand Fund. The FDD states that Engineering For Kids may require franchisees to contribute to a Brand Fund, a Regional Fund, or spend money on local advertising. Currently, Engineering For Kids requires contributions to the Brand Fund and direct spending on local advertising.
The maximum advertising obligation is 4% of gross sales. Currently, 2% of gross sales is allocated to the Brand Fund. The due date for Brand Fund contributions is the same as the royalty fee, payable monthly on or before the 5th day of each subsequent period.
Prospective franchisees should note that Engineering For Kids retains the right to change the allocation between the different forms of advertising (Brand Fund, Regional Fund, and local advertising). Franchisees must also adhere to the payment methods designated by Engineering For Kids, which may include electronic funds transfer. To qualify for reduced royalty rates, franchisees must comply with their royalty and Brand Fund contribution requirements.