Can Engineering For Kids terminate a 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 the 2025 Engineering For Kids Franchise Disclosure Document, Engineering For Kids retains the right to terminate any Regional Fund. However, there is a condition placed on this right.
The FDD states that a Regional Fund will not be terminated until all the money within that fund has been spent on marketing and/or promotional purposes. This provides some assurance to franchisees contributing to the fund that their contributions will be used as intended before any termination occurs.
This condition ensures that Engineering For Kids cannot simply shut down a Regional Fund and reallocate the money for other purposes. It guarantees that the funds are used for their intended marketing and promotional activities, benefiting the franchisees within that region until the fund is depleted. This clause protects the financial interests of franchisees who have contributed to the Regional Fund.