What are the requirements for the confidentiality agreements that Engineering For Kids franchisees must have employees sign?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
You must require your employees and any other person or entity to which you wish to disclose any confidential information to execute agreements that they will maintain the confidentiality of the disclosed information. The agreements must be in a form satisfactory to us and must identify us as a third-party beneficiary with the independent right to enforce the agreements.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 42–44)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, franchisees must ensure that their employees, and any other individuals they disclose confidential information to, sign agreements to maintain the confidentiality of that information. These agreements must be in a form that is satisfactory to Engineering For Kids.
Furthermore, Engineering For Kids requires that these confidentiality agreements identify Engineering For Kids as a third-party beneficiary. This provision grants Engineering For Kids the independent right to enforce the agreements, meaning Engineering For Kids can directly take legal action against an employee or other party who breaches the confidentiality agreement, even if the franchisee does not.
This requirement is fairly standard in franchising, as franchisors need to protect their trade secrets and confidential information. By mandating specific terms in the confidentiality agreements and establishing themselves as a third-party beneficiary, Engineering For Kids aims to ensure a consistent and enforceable standard of confidentiality across all franchise locations. Prospective franchisees should carefully review the template confidentiality agreement provided by Engineering For Kids and understand their obligations to protect confidential information.