How long does the 'Post-Term Period' last for the Engineering For Kids non-compete agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
For two (2) years from the date of: (a) a Transfer permitted under Section 14 above; (b) expiration or termination of this Agreement (regardless of the cause for termination); or (c) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 17.4 (collectively, the "Post-Term Period"); you agree that you will not 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, within an area extending five (5) miles beyond the perimeter of the Territory, and/or within any other Territory in which an Engineering For Kids Business operates at the time of expiration, termination, or transfer. You also agree that during the Post-Term Period you will not contact any current or former customers or participants of the Franchised Business, or divert or attempt to divert to a Competitive Business any current or former customers or participants of the Franchised Business. This Section 17.4 does not apply, of course, to another Engineering For Kids Business that you operate pursuant to a separate agreement with us that remains valid and in effect.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, the Post-Term Period for the non-compete agreement lasts for two years. This period begins from the date of a permitted transfer, the expiration or termination of the Franchise Agreement (regardless of the reason), or a final order from an arbitrator or court after all appeals have been exhausted.
During this two-year Post-Term Period, a franchisee is restricted from owning, managing, or being involved in any competitive business within their territory, an area extending five miles beyond the territory's perimeter, or any other territory where an Engineering For Kids Business operates. This includes being employed by, advising, making loans to, or consulting for a competitive business.
Additionally, during the Post-Term Period, franchisees are prohibited from contacting current or former customers or participants of the franchised business or attempting to divert them to a competitive business. However, these restrictions do not apply if the franchisee operates another Engineering For Kids Business under a separate, valid agreement.