Can Engineering For Kids require franchisees to purchase from a single source?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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Suppliers and Specifications in General
We have the right to require that all Proprietary Materials (which may include course materials, supplies and equipment designed and prepared according to our proprietary standards), Authorized Products (which may include other educational materials and other related products for sale to customers), and any other services, products, supplies, materials and equipment that you use in the operation of the Franchised Business or resell through your Franchised Business: (a) meet specifications that we establish from time to time; and/or (b) be purchased only from suppliers that we have expressly approved; and/or (c) be purchased only from a single source (which may include us or our affiliates or a buying cooperative that we organize). To the extent that we establish specifications, require approval of suppliers, or designate specific suppliers for particular items, we will publish our requirements in the Manual.
In connection with any items or services for which we specify designated or approved suppliers, we may require that the manufacturers and suppliers demonstrate that they possess the ability to meet our standards and specifications and adequate quality controls, and the capacity to supply your needs promptly and reliably.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES\ (FDD pages 19–24)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has the right to require franchisees to purchase certain items from a single source. Specifically, Engineering For Kids can mandate that Proprietary Materials, Authorized Products, and any other services, products, supplies, materials, and equipment used in the operation of the franchised business be purchased from a single designated source. This single source may include Engineering For Kids itself, its affiliates, or a buying cooperative organized by Engineering For Kids.
Engineering For Kids maintains the authority to establish specifications for these items, demand that they be purchased only from approved suppliers, or designate a single source for their procurement. These requirements will be published in the Engineering For Kids manual. This allows Engineering For Kids to maintain quality control and standardization across all franchise locations.
For a prospective Engineering For Kids franchisee, this means that a significant portion of their purchases and leases, approximately 90% when establishing the franchise and 30%-40% during operation, may be dictated by Engineering For Kids' approved suppliers or single-source requirements. While this ensures consistency, it also limits the franchisee's ability to negotiate prices or choose suppliers based on their own preferences. Franchisees are required to submit a written request to Engineering For Kids if they would like to use unapproved curriculum or purchase from unapproved suppliers, and may be required to cover the costs of inspection and testing for these requests.