Does Engineering For Kids have the right to use data from clients of the Franchised Business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, Engineering For Kids has extensive rights regarding data collected by franchisees. The FDD states that all data pertaining to the franchised business is owned exclusively by Engineering For Kids. This includes any data collected or developed regarding customers, clients, 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. However, Engineering For Kids grants the franchisee 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 according to Engineering For Kids' policies. The franchisee acknowledges that they do not have any ownership rights to the data, except for the right to use it under the terms of the agreement.
The franchisee is also obligated to provide Engineering For Kids with reports from the collected data and to download or provide access to all information and materials related to the operation of the franchised business. This information must be presented in the manner prescribed by Engineering For Kids. Upon termination, expiration, or transfer of the franchise agreement, the franchisee must provide all data to Engineering For Kids upon request.