Can Engineering For Kids use Brand Fund contributions for regional advertising?
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' 2025 Franchise Disclosure Document, the Brand Fund, which franchisees contribute to, can be used for regional advertising. Engineering For Kids has the authority to use these contributions for costs associated with local, regional, and/or national advertising, marketing, public relations, and/or promotional programs. This includes advertising campaigns across various media and other activities they believe would benefit franchisees and the Engineering For Kids brand.
Engineering For Kids has the right to manage all marketing programs, including final decisions on creative concepts, materials, and media used. They also have the right to deduct 15% of the Brand Fund contributions for administration and management of the fund. 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 will deposit all Brand Fund contributions in a separate account and will not use them for general operating expenses, except for reasonable administrative costs. They may also charge the Brand Fund fees at reasonable market rates for advertising, marketing, and promotional services they provide instead of using third-party agencies. This gives Engineering For Kids broad discretion in how the Brand Fund is used to promote the brand at the local, regional, and national levels.