Is Engineering For Kids required to have an independent audit of the Brand Fund completed?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not required to have an independent audit of the Brand Fund completed.
We will make available an unaudited statement of contributions and expenditures for the Brand Fund ninety (90) days after the close of our fiscal year to franchisees that make a written request for a copy.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, Engineering For Kids is not required to have an independent audit of its Brand Fund. However, Engineering For Kids will provide an unaudited statement of contributions and expenditures for the Brand Fund to franchisees who request it in writing. This statement will be available ninety (90) days after the close of Engineering For Kids' fiscal year.
This means that while franchisees can get a general overview of where the Brand Fund money is going, the information is not verified by an independent third party. This is a potential risk for franchisees, as there is no guarantee of complete accuracy or transparency in the unaudited statement.
Many franchisors do conduct independent audits of their brand funds to ensure transparency and build trust with their franchisees. The absence of a required audit for Engineering For Kids' Brand Fund may be a point of concern for some prospective franchisees. It would be prudent for a potential franchisee to discuss this with Engineering For Kids to understand their rationale and internal controls regarding the Brand Fund.