What are the two options for the Local Advertising fee for an Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
the Advertising section in Item 11. |
| Type of Fee (note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| • Local advertising: the greater of: 2% of the Gross Sales (the "Local Ad Percentage Spend") or $100 per mont |
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, franchisees have two options for the local advertising fee. The fee is either 2% of gross sales, referred to as the "Local Ad Percentage Spend", or a minimum of $100 per month, known as the "Minimum Local Ad Spend". The franchisee is obligated to pay whichever amount is greater.
This means that each month, an Engineering For Kids franchisee must calculate 2% of their gross sales. If that amount is less than $100, they are still required to pay $100 for local advertising. If 2% of their gross sales exceeds $100, they must pay the higher percentage amount.
For example, if an Engineering For Kids franchise has gross sales of $4,000 in a month, the local advertising fee would be $100 (2% of $4,000 is $80, but the minimum is $100). However, if the gross sales are $10,000, the local advertising fee would be $200 (2% of $10,000). This ensures that Engineering For Kids franchisees are consistently contributing to local advertising efforts, with the amount scaling up as their revenue increases.