For Engineering For Kids, what constitutes the 'Post-Term Period'?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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; and the term "Competitive Business" also includes making use of the Data for any purpose whatsoever other than in connection with your Engineering For Kids Business pursuant to this Agreement); or
17.3.2. Divert or attempt to divert any business, customer, or participant, or potential business, customer, or participant, to any Competitive Business.
17.4. After Termination, Expiration or Transfer
For two (2) years from the date of: (a) a Transfer permitted under Section 14 above; (b) expiration or termination of this Agreement (regardless of the cause for termination); or (c) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 17.4 (collectively, the "Post-Term Period"); you agree that you will not directly or indirectly own, manage, engage in, be employed by, advise, make loans to, consult for, or have any other interest in any Competitive Business that is, or intends to operate, inside the Territory, within an area extending five (5) miles beyond the perimeter of the Territory, and/or within any other Territory in which an Engineering For Kids Business operates at the time of expiration, termination, or transfer.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the Post-Term Period is defined as a two-year period that begins after certain events. These events include a permitted transfer of the franchise, the expiration or termination of the franchise agreement (regardless of the reason for termination), or a final order from an arbitrator or court regarding the agreement or its enforcement, after all appeals have been exhausted.
During this Post-Term Period, the franchisee is restricted from engaging in any Competitive Business. This includes owning, managing, or being involved with a business that offers similar services to Engineering For Kids within the franchisee's original territory. The restriction extends to an area within five miles beyond the perimeter of the territory, and/or within any other territory where an Engineering For Kids Business operates at the time of expiration, termination, or transfer.
Additionally, during the Post-Term Period, the franchisee is prohibited from contacting any current or former customers or participants of the Franchised Business, or from diverting or attempting to divert these customers or participants to a Competitive Business. However, these restrictions do not apply if the franchisee operates another Engineering For Kids Business under a separate, valid agreement with the company. For owners, the time period runs from the expiration, termination, or transfer of the agreement or from the termination of the owner's relationship with the franchisee, whichever occurs first.