Does Engineering For Kids have any role in decisions regarding the employment of the franchisee's employees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
The Owners personally bind themselves to this Section 17 by signing this Agreement and/or the attached Guaranty. With respect to the Owners, the time period in Section 17.4 will run from the expiration, termination, or Transfer of this Agreement or from the termination of the Owner's relationship with you, whichever occurs first. You must also require and obtain execution of covenants similar to those set forth in Section 12 above, and this Section 17 (as modified to apply to an individual), from any or all of the following persons: your officers, directors, and senior management employees. The covenants required
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, while the document does not explicitly state that Engineering For Kids is directly involved in the employment decisions of the franchisee's employees, it does state that franchisees must ensure their employees sign agreements to protect Engineering For Kids's interests. Specifically, franchisees must obtain covenants similar to those in Section 12 and Section 17 of the franchise agreement from their officers, directors, and senior management employees. These covenants pertain to non-disclosure and non-competition, ensuring that employees do not share confidential information or engage in competitive activities.
This requirement suggests that Engineering For Kids sets standards that influence who franchisees can hire and what agreements those employees must adhere to. By mandating these agreements, Engineering For Kids aims to protect its confidential information, system standards, and market share. This is a common practice in franchising to maintain brand consistency and prevent sensitive information from falling into the hands of competitors.
Prospective franchisees should be aware that they will need to implement and enforce these non-disclosure and non-competition agreements with their staff. This may involve legal costs and administrative effort to ensure compliance. It also means that franchisees have a responsibility to ensure their employees understand and abide by these covenants, which could affect hiring and termination decisions. Franchisees should seek clarification from Engineering For Kids regarding the specific requirements and any recommended procedures for implementing these employee agreements.