factual

Is Engineering For Kids required to ensure that each franchisee benefits directly from advertising?

Engineering_For_Kids Franchise · 2025 FDD

Answer from 2025 FDD Document

In administering the Brand Fund, we need not make expenditures for you that are equivalent or proportionate to your advertising contributions or insure that you benefit directly or pro rata from advertising or promotion conducted in connection with the advertising

contributions.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–36)

What This Means (2025 FDD)

According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids does not guarantee that each franchisee will directly benefit from advertising or promotion conducted using advertising contributions. The advertising contributions are intended to maximize general public recognition and acceptance of the Proprietary Marks for the benefit of the System as a whole.

Engineering For Kids has the right to make or refrain from making expenditures for advertising and promotional activities. The company also has control over the concepts, materials, and all other matters relating to advertising, public relations, marketing, market research, and promotional campaigns.

Franchisees are required to contribute to the Brand Fund, and these contributions can be used for local, regional, and/or national advertising, marketing, public relations, and/or promotional programs. Engineering For Kids may deduct 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. While promotional materials produced with Brand Fund monies will be made available to franchisees at a reasonable cost, Engineering For Kids need not ensure that expenditures are equivalent or proportionate to a franchisee's contributions.

This arrangement is typical in many franchise systems, where advertising funds are used for the overall benefit of the brand, and individual franchisees may not always see a direct or proportionate return on their specific contributions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.