Can an Engineering For Kids franchisee engage in other business activities during the term of the agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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; and the term "Competitive Business" also includes making use of the customer lists and other data
pertaining to the Engineering For Kids Business for any purpose whatsoever other than in connection with your Engineering For Kids Business pursuant to this Agreement); or
15.3.8. (ii) Divert or attempt to divert any business or customer, or potential business or customer, to any Competitive Business;
(c) Member covenants and agrees that during the Post-Term Period (defined below), except as otherwise approved in writing by EFK, Member shall not, either 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 (defined in the Franchise Agreement) or inside any other Territory granted to another Engineering For Kids Business.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in other business activities that are competitive to Engineering For Kids during the term of the Franchise Agreement, unless they receive written approval from Engineering For Kids. Specifically, the franchisee cannot 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. A Competitive Business is defined as one that provides services similar to those of Engineering For Kids, including youth educational and enrichment programs in math, science, technology, or engineering.
This restriction also extends to preventing the franchisee from diverting or attempting to divert any business or customer to a Competitive Business. This means a franchisee must focus their business efforts solely on Engineering For Kids and not operate or promote any competing business during the agreement term without explicit permission.
These non-compete covenants also apply to a 'Member', which seems to refer to individuals associated with the franchisee who receive specialized training and confidential information. These individuals are similarly restricted from engaging in competitive business activities during the term of the Franchise Agreement, reinforcing Engineering For Kids's efforts to protect its business model and confidential information.
After the franchise agreement concludes, these restrictions continue for a period, preventing involvement in competitive businesses within the territory granted to the franchisee or any other Engineering For Kids territory. This post-term restriction lasts for a defined 'Post-Term Period' and aims to further protect Engineering For Kids' market position and franchisee network.