What is the role of Engineering For Kids International, LLC ('EFK') in the non-disclosure agreement?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
RIA
APPENDIX C
SAMPLE OF NON-DISCLOSURE AND NON-COMPETITION AGREEMENT (BETWEEN FRANCHISEE AND ITS PERSONNEL)
| 2 0 2 4 | 2 0 2 3 | 2 0 2 2 | | |---|---|---|---| | A S S E T S | | | | | C u r r e n t a s s e t s | | | | | C a s h a n d c a s h e q u iv a le n t s | $ 2 1 ,7 3 5 | $ 1 1 7 ,6 5 5 | $ 3 1 ,0 3 6 | | A c c o u n t s r e c e iv a b le , n e t o f a llo w a n c e fo r c r e | d it lo s s e s 5 8 ,6 6 1 | 4 5 ,5 2 3 | 6 2 ,2 3 4 | | D u e fr o m r e la t e d p a r t y | 1 4 ,9 6 8 | - | - | | P r e p a id e x p e n s e s | 2 ,5 7 5 | 6 ,2 0 0 | 6 ,3 1 1 | | T o t a l c u r r e n t a s s e t s | 9 7 ,9 3 9 | 1 6 9 ,3 7 8 | 9 9 ,5 8 1 | | I n t a n g ib le a s s e t s , le s s a c c u m u la t e d a m o r t iz a t io | n 4 0 ,4 1 7 | 4 9 ,0 4 6 | 2 0 ,1 1 0 | | T O T A L A S S E T S | $ 1 3 8 ,3 5 6 | $ 2 1 8 ,4 2 4 | $ 1 1 9 ,6 9 1 | WHEREAS, Engineering for Kids International, LLC ("EFK") has developed a distinctive set of specifications and operating procedures (collectively, the "System") for the operation of "Engineering For Kids" youth educational program businesses ("Engineering For Kids Businesses").
WHEREAS, EFK and Franchisee have executed a Franchise Agreement ("Franchise Agreement") granting Franchisee the right to operate an Engineering For Kids Business under the terms and conditions of the Franchise Agreement;
WHEREAS, Member, by virtue of his or her position with Franchisee, will gain access to certain of EFK's Confidential Information, as defined herein, and must therefore be bound by the same confidentiality and non-competition agreement that Franchisee is bound by.
IN CONSIDERATION of these premises, the conditions stated herein, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree as follows:
- Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, Engineering For Kids International, LLC ("EFK") plays a central role as a third-party beneficiary in the non-disclosure and non-competition agreement. This agreement is put in place because the member, by virtue of their position with the franchisee, will have access to confidential information.
The non-disclosure agreement ensures that members, who gain access to Engineering For Kids' confidential information through their association with the franchisee, are bound by confidentiality and non-competition terms. This protects Engineering For Kids' System, business plans, and trade secrets. The agreement specifies that members cannot use confidential information for purposes outside the operation of the Engineering For Kids Business, either during the term of the Franchise Agreement or afterward.
Engineering For Kids is explicitly identified as an intended third-party beneficiary of the non-disclosure agreement, giving them the right to enforce the agreement independently or jointly with the franchisee. This provision underscores the franchisor's vested interest in protecting its confidential information and competitive advantage, even when accessed through the franchisee's personnel. Members are also restricted from engaging in any competitive business during the term of the agreement and for a specified period afterward within the designated territory, further safeguarding Engineering For Kids' market position.