Can an Engineering For Kids franchisee sell or transfer the data collected from their franchise?

According to Engineering For Kids' 2025 Franchise Disclosure Document, franchisees are generally restricted from selling or transferring the data they collect. The FDD specifies that franchisees may not sell, transfer, or use data for purposes other than operating the franchised business and marketing Engineering For Kids programs and services. This restriction highlights that Engineering For Kids retains ownership and control over the data generated by its franchisees.

However, there is an exception: if a franchisee transfers their Engineering For Kids business, they may transfer the data to the buyer as part of the transfer, provided that the buyer enters into a franchise agreement with Engineering For Kids and complies with all applicable data policies, laws, and regulations. This condition ensures that the data remains within the Engineering For Kids system and is used in accordance with the brand's standards and legal requirements.

Engineering For Kids also has the right to specify the data franchisees must collect and maintain, and franchisees must provide reports from this data to Engineering For Kids. Upon termination, expiration, or transfer of the franchise agreement, franchisees must provide all data to Engineering For Kids. This underscores the franchisor's control over the data and its use within the franchise system. The franchisee is granted a royalty-free, non-exclusive license to use the data while the agreement is in effect, but only for operating the franchised business, further limiting the franchisee's rights to the data.