Can an Engineering For Kids franchisee sell or transfer the data?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
license to you to use the Data while this Agreement (including any successor agreement) is in effect, but only in connection with operating the Franchised Business and only in accordance with the policies that we periodically establish (which may include, without limitation, terms and conditions relating to use, retention, storage and/or removal). You acknowledge and agree that except for the right to use the Data under this clause, you will not develop or have any ownership rights in or to the Data. You may not sell, transfer, or use Data for any purpose other than operating the Franchised Business and marketing "Engineering For Kids" Programs and services. However, if you Transfer the Franchised Business (as provided in Section 14.2 below), as part of the Transfer, you may Transfer the Data to the buyer for value in connection with the license to use the Data under a franchise agreement with us, provided that you comply with all applicable policies, laws, and regulations relating to such Data.
- 8.5.7. We have the right to specify, from time to time, in the Manual or otherwise in writing, the Data and other information that you must collect and maintain on the Computer System in the manner that we prescribe. You agree to provide us with the reports that we may reasonably request from the Data so collected and maintained. You agree that you will download (and/or provide us with access to) on a daily basis, or in such other intervals that we may require, all information and materials that we may require in connection with your operation of the Franchised Business, and that you will present such information and materials in the manner we may prescribe. We may use all such information, data, and reports in any manner, including, without limitation, providing financial and operating reports to franchisees and operators operating under the System.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees are generally prohibited from selling or transferring data obtained through their franchise operations. The FDD states that franchisees cannot sell, transfer, or use data for purposes outside of operating the franchised business and marketing Engineering For Kids programs and services. This restriction underscores the franchisor's control over customer and business data within the Engineering For Kids system.
However, there is an exception: if a franchisee transfers their entire Engineering For Kids franchised business, they may transfer the associated data to the buyer. This transfer is contingent on the buyer entering into a franchise agreement with Engineering For Kids and complying with all applicable data policies, laws, and regulations. This provision ensures that data is only transferred to parties authorized to operate an Engineering For Kids franchise and that data handling remains compliant with legal standards.
Engineering For Kids also maintains ownership of all data pertaining to the franchised business, excluding consumer credit card and payment information. The franchisor has the right to use this data in any manner they deem appropriate without compensating the franchisee. While the franchise agreement is active, Engineering For Kids grants the franchisee a royalty-free, non-exclusive license to use the data for operating the franchised business, subject to established policies regarding use, retention, storage, and removal. This arrangement highlights that Engineering For Kids retains ultimate control and ownership of the data, while franchisees have limited usage rights strictly for business operations.