Does Engineering For Kids have an obligation to develop Required Software for franchisees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5.4. You agree to implement and periodically upgrade and make other changes to the Computer System and Required Software as we may reasonably request in writing (collectively, "Computer Upgrades").
8.5.5. You agree to comply with the specifications that we issue with respect to the Computer System and the Required Software, and with respect to Computer Upgrades, at your expense, which may include monthly licensing and support fees and/or other charges (including for example and without limitation, charges for installation, set-up and/or training) due to the supplier of such services and/or items (which suppliers may include us or our affiliates).
You also agree to afford us unimpeded access to your Computer System and Required Software, including all information and data maintained thereon, in the manner, form, and at the times that we request.
- 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 the 2025 Engineering For Kids FDD, Engineering For Kids franchisees are required to implement, periodically upgrade, and make changes to the computer system and required software as reasonably requested in writing by Engineering For Kids. These changes are referred to as "Computer Upgrades." Franchisees must comply with the specifications issued by Engineering For Kids regarding the computer system, required software, and computer upgrades.
These upgrades and changes are at the franchisee's expense, potentially including monthly licensing and support fees, as well as charges for installation, setup, and training. These fees are paid to the supplier of such services or items, which may include Engineering For Kids or its affiliates. Engineering For Kids is also granted unimpeded access to the franchisee's computer system and required software, including all information and data maintained on it, in the manner, form, and at the times requested by Engineering For Kids.
All data pertaining to, derived from, or displayed in connection with the franchised business is owned exclusively by Engineering For Kids. This includes data collected or developed regarding the franchised business's customers, clients, participants, and potential customers, but excludes consumers' credit card and/or other payment information. Engineering For Kids has the right to use this data in any manner they deem appropriate without compensating the franchisee. The franchisee is granted a royalty-free, non-exclusive license to use the data while the Franchise Agreement is in effect, but only in connection with operating the franchised business and in accordance with Engineering For Kids' policies.