Is the Engineering For Kids franchisee's license to use data royalty-free?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.5.6. 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, Engineering For Kids owns all data pertaining to the franchised business. This includes any data collected or developed regarding customers and potential customers, but excludes consumers' credit card and other payment information.
Engineering For Kids grants the franchisee a royalty-free, non-exclusive license to use this data while the Franchise Agreement is in effect, including any successor agreement. However, this use is specifically limited to operating the franchised business and must comply with Engineering For Kids's policies, which may include terms and conditions relating to use, retention, storage, and removal of the data.
The franchisee acknowledges that they do not have any ownership rights to the data, except for the right to use it under the terms of the license. The franchisee is prohibited from selling, transferring, or using the data for any purpose other than operating the Engineering For Kids business and marketing Engineering For Kids programs and services. This ensures that Engineering For Kids maintains control over the data generated by its franchisees, while allowing franchisees to use the data to effectively manage and market their businesses within the Engineering For Kids system.