May Engineering For Kids require that franchisees purchase only 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.
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 Proprietary Materials, Authorized Products, and other services, products, supplies, materials, and equipment from a single source. This single source may include Engineering For Kids itself, its affiliates, or a buying cooperative organized by Engineering For Kids.
This requirement allows Engineering For Kids to maintain quality control and consistency across all franchise locations. It also enables Engineering For Kids to negotiate favorable pricing and terms with suppliers by leveraging the collective purchasing power of all franchisees. While this may limit a franchisee's ability to seek out alternative suppliers or negotiate their own prices, it can also streamline the procurement process and ensure access to approved products and materials.
If a franchisee wishes to use programs, curriculum, or materials that Engineering For Kids has not approved, they must submit a written request for approval. Engineering For Kids has the right to inspect the proposed supplier's facilities and/or test samples of the proposed products, with the franchisee bearing the reasonable costs of inspection and testing, regardless of whether approval is granted. Engineering For Kids reserves the right to grant, deny, or revoke approval of programs, curriculum materials, products, services, and suppliers based solely on its judgment.
Engineering For Kids estimates that purchases and leases from Engineering For Kids, designated and/or approved suppliers, or otherwise in accordance with their specifications, account for approximately 90% of a franchisee's overall purchases and leases when establishing the Franchised Business and 30%-40% when operating the Franchised Business. While Engineering For Kids does not currently have any purchasing or distribution cooperatives, they may negotiate purchase agreements with suppliers for the benefit of the franchise system.