Can the confidentiality and non-competition agreements for Engineering For Kids franchise managers be adjusted?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
ich may be communicated to Member or which Member may learn by virtue of Member's relationship with Franchisee. All information, knowledge and know-how relating to EFK, its business plans, Engineering For Kids Businesses, or the System ("Confidential Information") is deemed confidential, except for information that Member can demonstrate came to Member's attention by lawful means prior to disclosure to Member; or which, at the time of the disclosure to Member, had become a part of the public domain.
2. Covenants Not to Compete.
- (a) Member specifically acknowledges that, pursuant to the Franchise Agreement, and by virtue of its position with Franchisee, Member will receive valuable specialized training and Confidential Information, including, without limitation, information regarding the operational, sales, promotional, and marketing methods and techniques of EFK and the System.
- (b) Member covenants and agrees that during the term of the Franchise Agreement, except as otherwise approved in writing by EFK, Member shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or entity:
- 15.3.7. (i) Own, manage, engage in, be employed by, advise, make loans to, consult for, rent or lease to, or have any other interest in any Competitive Business (the term "Competitive Business" means a business engaged in the provision of services that are the same as or similar to an Engineering For Kids Business, including, but not limited to, the provision of youth educational and enrichment programs and services relating to the fields of math, science, technology or engineering;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 44–45)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, the non-competition agreements for franchise managers ('Members') can be adjusted, but only with written approval from Engineering For Kids. The standard agreement mandates that during the term of the Franchise Agreement, the Member cannot engage in any Competitive Business, which includes businesses offering similar youth educational programs in math, science, technology, or engineering. This restriction extends to owning, managing, being employed by, advising, making loans to, or consulting for any such Competitive Business.
The agreement also restricts the Member from diverting or attempting to divert any business or customer to a Competitive Business. After the Franchise Agreement terminates, the Member is restricted from involvement with a Competitive Business within the territory granted to the franchisee or any other territory granted to another Engineering For Kids franchise, unless Engineering For Kids provides written approval.
This means that while the standard agreement is quite restrictive, Engineering For Kids retains the discretion to approve exceptions in writing. A prospective franchisee should discuss specific scenarios with Engineering For Kids to understand the likelihood of obtaining such approvals and what conditions might apply.