factual

Can Engineering For Kids use Brand Fund contributions for giveaways?

Engineering_For_Kids Franchise · 2025 FDD

Answer from 2025 FDD Document

nd Fund as described in the first paragraph above under "Ongoing Advertising". 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).

We will deposit all contributions to the Brand Fund in an account separate from our other funds and will not use them to defray any of our general operating expenses, except for reasonable administrative costs and overhead we incur in activities reasonably related to the administration of the Brand Fund or the management of Brand Fund-supported programs (including full or partial salaries of our personnel who devote full- or part-time to Brand Fund activities). Additionally, we may charge the Brand Fund fees at reasonable market rates for advertising, marketing, and promotional services that we ourselves actually provide in lieu of engaging third-party agencies to provide such services.

We may make, or refrain from making, any expenditures for advertising and promotional activities. In any calendar year, we may spend more or less than that year's aggregate Advertising Contributions to the Brand Fund.

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' 2025 Franchise Disclosure Document, the Brand Fund, which franchisees contribute to, can be used for giveaways. Engineering For Kids may use these contributions for costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs and materials. These activities are intended to benefit Franchised Businesses and the Engineering For Kids brand and System generally.

Specifically, the funds can be used for advertising campaigns, online marketing, direct mail advertising, market research, purchasing promotional items, and administering promotions, contests, and giveaways. The Brand Fund can also be used for public relations events and community involvement activities. Engineering For Kids has the right to deduct 15% of the Brand Fund contributions for administration and management of the Brand Fund.

Engineering For Kids has the right to direct all marketing programs, including final decisions over creative concepts, materials, and media used. The Brand Fund contributions may be used for national, regional, and/or local advertising activities in various media. The Brand Fund will be maintained in an account separate from Engineering For Kids' other funds and will not be used for general operating expenses, except for reasonable administrative costs. The Brand Fund will not expend any money for advertising that is principally a solicitation for the sale of franchises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.