Can Engineering For Kids use Brand Fund contributions for contests?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use your contributions and any earnings on the Brand Fund for any costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials, and any other activities we believe would benefit Franchised Businesses and "Engineering For Kids" brand and the System generally, including advertising campaigns in various media; creation and maintenance of online marketing (including one or more websites or other Online Sites (as defined below), social media/networking and other digital media); direct mail advertising; market research and testing, including secret customers and customer satisfaction surveys; employing advertising and/or public relations agencies; purchasing promotional items; conducting and administering promotions, contests, giveaways, public relations events, community involvement activities, etc.; providing promotional and other marketing materials and services to our franchisees; and development of, or producing for franchisees, materials and items used in the Businesses for customer viewing and use; and on materials and/or services designed to promote the brand and employment opportunities in order to facilitate selection and hiring of qualified staff. We have the right to deduct from the Brand Fund 15% of the monies in the Brand Fund on contributions for administration and management of the Brand Fund. We have the right to direct all marketing programs, with the final decision over creative concepts, materials and media used in the programs and their placement. The Brand Fund contributions may be used for national, regional and/or local advertising activities and may take place in a variety of media (including television, radio, and print).
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's 2025 Franchise Disclosure Document, the Brand Fund, which franchisees contribute to, can be used for various promotional activities, including contests. Engineering For Kids can use these funds for local, regional, and national advertising, marketing, public relations, and promotional programs. This includes administering promotions, contests, and giveaways, all aimed at benefiting the franchisees, the Engineering For Kids brand, and the overall system.
The document specifies that Engineering For Kids has the authority to direct all marketing programs, including making final decisions on creative concepts, materials, and media used. While 15% of the Brand Fund can be deducted for administrative and management costs, the contributions are to be used for the benefit of the franchise system. The Brand Fund contributions may be used for national, regional and/or local advertising activities and may take place in a variety of media (including television, radio, and print).
Engineering For Kids deposits all Brand Fund contributions into a separate account and will not use them for general operating expenses, except for reasonable administrative costs. An unaudited statement of contributions and expenditures for the Brand Fund will be made available to franchisees who request it in writing 90 days after the close of the fiscal year. This provides some transparency regarding how the funds are being used. Franchisees should be aware that Engineering For Kids is not a trustee or fiduciary with respect to the Brand Fund.
Engineering For Kids may stop collecting and disbursing advertising contributions and terminate the Brand Fund at any time, but not until all monies in the fund have been expended for marketing purposes. The Brand Fund will not be used for advertising that primarily solicits the sale of franchises. This ensures that the fund is used to promote the Engineering For Kids brand and support existing franchisees rather than for franchise recruitment.