Does Engineering For Kids have the right to terminate any Regional Fund?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4.6. Although once established, each Regional Fund is intended to be of perpetual duration, we maintain the right to terminate any Regional Fund. A Regional Fund will not be terminated, however, until all monies in that Regional Fund have been expended for marketing and/or promotional purposes.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids retains the right to terminate any Regional Fund that is established. However, Engineering For Kids cannot terminate a Regional Fund until all the money within the fund has been spent on marketing and promotional activities.
Regional Funds are designed to administer regional marketing programs and develop standardized promotional materials for members to use in local marketing and promotion. These funds must be organized and governed in a manner approved in writing by Engineering For Kids, and any advertising or promotional plans must also receive prior approval from Engineering For Kids.
Franchisees are required to contribute to the Regional Fund each period, starting from when the fund is established, as detailed in other sections of the FDD. Unless otherwise specified in writing, Engineering For Kids will administer the Regional Fund in a similar manner to the Brand Fund. This includes having the right to direct marketing programs and make final decisions on creative concepts and materials.