Does the Engineering For Kids non-disclosure agreement address the issue of trade secrets?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
- Confidential Information. Member shall not, during the term of the Franchise Agreement or thereafter, communicate, divulge or use, for any purpose other than the operation of the Engineering For Kids Business, any confidential information, knowledge, trade secrets or know-how which may be communicated to Member or which Member may learn by virtue of Member's relationship with Franchisee. All information, knowledge and know-how relating to EFK, its business plans, Engineering For Kids Businesses, or the System ("Confidential Information") is deemed confidential, except for information that Member can demonstrate came to Member's attention by lawful means prior to disclosure to Member; or which, at the time of the disclosure to Member, had become a part of the public domain.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
Yes, according to the 2025 Engineering For Kids Franchise Disclosure Document, the non-disclosure agreement does address the issue of trade secrets. Specifically, the agreement states that the franchisee (referred to as "Member") must not disclose or use any confidential information, knowledge, trade secrets, or know-how gained through their relationship with the Engineering For Kids franchise, except for operating the Engineering For Kids Business. This obligation extends both during and after the term of the Franchise Agreement. The agreement defines confidential information broadly, encompassing business plans and the System used by Engineering For Kids.
Engineering For Kids emphasizes the importance of protecting its System and trade secrets, highlighting the substantial investments made in its development. The agreement states that unauthorized use or disclosure of trade secrets would hinder the protection of the System and discourage the exchange of ideas among franchisees. This underscores the franchisor's commitment to maintaining the confidentiality and integrity of its proprietary information.
The non-disclosure agreement also includes covenants not to compete, preventing franchisees from engaging in any Competitive Business during the term of the agreement and for a specified period afterward. A Competitive Business is defined as one that provides similar educational enrichment programs in math, science, technology, or engineering. This restriction aims to prevent franchisees from using the knowledge and trade secrets gained from Engineering For Kids to benefit a competing business, further safeguarding the franchisor's interests.
In practical terms, this means that a prospective Engineering For Kids franchisee must understand and agree to protect the franchisor's confidential information and trade secrets. Failure to comply with these provisions could result in legal action and financial penalties. The franchisee should carefully review the non-disclosure agreement and seek legal counsel if they have any questions or concerns about its terms.