Is the Engineering For Kids franchisee's license to use data exclusive?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that all data pertaining to, derived from, or displayed in connection with the Franchised Business (including, without limitation, any data that you collect or develop regarding the Franchised Business' customers, clients and participants and potential customers, but excluding consumers' credit card and/or other payment information), whether or not uploaded to our system from your system, and/or downloaded from your system to our system ("Data"), is deemed to be owned exclusively by us.
We will have the right to use such Data in any manner that we deem appropriate without compensation to you.
With respect to any Data from your Franchise Business that we maintain, we grant a royalty-free non-exclusive 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.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids's 2025 Franchise Disclosure Document, the franchisee receives a royalty-free, non-exclusive license to use data related to their franchise. Engineering For Kids retains ownership of all data pertaining to the franchised business, including customer information, excluding consumer credit card and payment information.
The franchisee's license to use this data is limited to operating the Engineering For Kids franchised business and must comply with the policies established by Engineering For Kids. The franchisee cannot sell, transfer, or use the data for purposes outside of operating the franchise and marketing Engineering For Kids programs.
This non-exclusive license means Engineering For Kids can also use the same data and allow other franchisees to use it. This arrangement allows Engineering For Kids to leverage data across the entire franchise system, but it also means the franchisee does not have exclusive control over the data they collect.
Upon termination or transfer of the franchise agreement, the franchisee must provide all data to Engineering For Kids. This includes data in digital, printed, or original formats, ensuring Engineering For Kids maintains control over the data generated by the franchise.