Does the Engineering For Kids non-disclosure agreement include a non-competition clause for the member?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Covenants Not to Compete.
- (a) Member specifically acknowledges that, pursuant to the Franchise Agreement, and by virtue of its position with Franchisee, Member will receive valuable specialized training and Confidential Information, including, without limitation, information regarding the operational, sales, promotional, and marketing methods and techniques of EFK and the System.
- (b) Member covenants and agrees that during the term of the Franchise Agreement, except as otherwise approved in writing by EFK, Member shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or entity:
- 15.3.7. (i) Own, manage, engage in, be employed by, advise, make loans to, consult for, rent or lease to, or have any other interest in any Competitive Business (the term "Competitive Business" means a business engaged in the provision of services that are the same as or similar to an Engineering For Kids Business, including, but not limited to, the provision of youth educational and enrichment programs and services relating to the fields of math, science, technology or engineering; and the term "Competitive Business" also includes making use of the customer lists and other data
pertaining to the Engineering For Kids Business for any purpose whatsoever other than in connection with your Engineering For Kids Business pursuant to this Agreement); or
15.3.8. (ii) Divert or attempt to divert any business or customer, or potential business or customer, to any Competitive Business;
(c) Member covenants and agrees that during the Post-Term Period (defined below), except as otherwise approved in writing by EFK, Member shall not, either 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 (defined in the Franchise Agreement) or inside any other Territory granted to another Engineering For Kids Business.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, the non-disclosure agreement does include a non-competition clause for the member. During the term of the Franchise Agreement, the member is restricted from engaging in any Competitive Business, which includes businesses that offer similar youth educational programs in math, science, technology, or engineering. This restriction applies unless Engineering For Kids provides written approval otherwise. The member is also prohibited from using customer lists or data from the Engineering For Kids Business for any purpose outside of the franchise agreement.
Post-termination, the non-competition clause extends for a period (Post-Term Period) and restricts the member from involvement with any Competitive Business within the Territory defined in the Franchise Agreement or any other territory granted to another Engineering For Kids Business. This restriction also prevents the member from soliciting or diverting business from current or former customers of the Engineering For Kids franchise.
These non-competition covenants are designed to protect Engineering For Kids's interests in its confidential information, operational methods, and customer relationships. The agreement specifies that the member will receive specialized training and confidential information, making these restrictions necessary to protect the franchisor's investment in the system. Franchisees should carefully review these restrictions to understand the scope of prohibited activities and the duration of the non-compete obligations, both during the franchise term and after its termination or transfer.