Does Engineering For Kids have the right to specify archival back-up systems for franchisees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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. However, if you Transfer the Franchised Business (as provided in Section 14.2 below), as part of the Transfer, you may Transfer the Data to the buyer for value in connection with the license to use the Data under a franchise agreement with us, provided that you comply with all applicable policies, laws, and regulations relating to such Data.
8.5.7. We have the right to specify, from time to time, in the Manual or otherwise in writing, the Data and other information that you must collect and maintain on the Computer System in the manner that we prescribe. You agree to provide us with the reports that we may reasonably request from the Data so collected and maintained. You agree that you will download (and/or provide us with access to) on a daily basis, or in such other intervals that we may require, all information and materials that we may require in connection with your operation of the Franchised Business, and that you will present such information and materials in the manner we may prescribe. We may use all such information, data, and reports in any manner, including, without limitation, providing financial and operating reports to franchisees and operators operating under the System. In no way limiting the above, upon termination, expiration, and/or transfer of this Agreement and/or the Franchised Business, you agree to provide us with all data (in the digital machine-readable format that we specify, and/or printed copies, and/or originals) promptly upon our request.
8.5.8. You agree to abide by all applicable laws pertaining to the privacy of consumer, employee, and transactional information ("Privacy Laws").
(a) You agree to comply with our standards and policies pertaining to Privacy Laws. If there is a conflict between our standards and policies pertaining to Privacy Laws and actual applicable law, you shall: (i) comply with the requirements of applicable law; (ii) immediately give us written notice of said conflict;
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, Engineering For Kids has the right to specify data collection, maintenance, and computer systems for franchisees. Engineering For Kids can specify the data and other information that franchisees must collect and maintain on their computer systems, as well as the manner in which it is maintained.
Engineering For Kids also has the right to request reports from the data collected and maintained by franchisees. Franchisees must download or provide access to all information and materials related to the operation of the franchised business at intervals required by Engineering For Kids, and present this information as prescribed by Engineering For Kids. Engineering For Kids may use this information in any manner, including providing financial and operating reports to other franchisees.
Upon termination, expiration, or transfer of the franchise agreement, franchisees must provide Engineering For Kids with all data in the specified digital machine-readable format, printed copies, or originals upon request. Franchisees must also implement, upgrade, and make changes to the computer system and required software as reasonably requested by Engineering For Kids in writing. These computer upgrades may include monthly licensing and support fees or other charges due to the supplier of such services, which may include Engineering For Kids or its affiliates.
Overall, Engineering For Kids maintains significant control over the data and computer systems used by its franchisees, which is typical in franchise systems to ensure consistency and data security across the brand. Franchisees should be aware of these requirements and the associated costs for maintaining and upgrading their computer systems and data management practices.