What are the exceptions to the confidentiality requirements for Engineering For Kids franchisees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
During and after the term of the Franchise Agreement, you may not communicate, divulge, or use for any purpose other than the operation of the Franchised Business any confidential information, knowledge, trade secrets or know-how that may be communicated to you or that you may learn by virtue of your relationship with us. You may divulge confidential information only to your professional advisers and to your employees who must have access to the information to operate the Franchised Business. All information, knowledge and know-how relating to us, our business plans, or the System are deemed confidential, except information that you can demonstrate came to your attention by lawful means before our disclosure; or which, at the time of our disclosure to you, had become a part of the public domain. Confidential Information includes the Manual and Proprietary Materials, as well as information relating to student instruction techniques and suppliers and customer data. You must require your employees and any other person or entity to which you wish to disclose any confidential information to execute agreements that they will maintain the confidentiality of the disclosed information. The agreements must be in a form satisfactory to us and must identify us as a third-party beneficiary with the independent right to enforce the agreements.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 42–44)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, franchisees are bound by confidentiality agreements during and after the franchise term. This means they cannot share or use confidential information gained through their relationship with Engineering For Kids for purposes outside of operating their franchise.
However, there are specific exceptions. Franchisees can share confidential information with their professional advisors and employees who need the information to run the Engineering For Kids franchise. Furthermore, information is not considered confidential if the franchisee can prove they already knew it lawfully before Engineering For Kids disclosed it, or if the information was already public at the time of disclosure.
Engineering For Kids requires franchisees to have their employees and anyone else they share confidential information with sign agreements to maintain confidentiality. These agreements must be acceptable to Engineering For Kids, which must be named as a third-party beneficiary with the right to enforce the agreements. This ensures Engineering For Kids can directly protect its confidential information even if the franchisee fails to do so.