What is the scope of the non-competition agreement that the member is bound by in the Engineering For Kids franchise?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Covenants Not to Compete.
- (a) Member specifically acknowledges that, pursuant to the Franchise Agreement, and by virtue of its position with Franchisee, Member will receive valuable specialized training and Confidential Information, including, without limitation, information regarding the operational, sales, promotional, and marketing methods and techniques of EFK and the System.
- (b) Member covenants and agrees that during the term of the Franchise Agreement, except as otherwise approved in writing by EFK, Member shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, or entity:
- 15.3.7. (i) Own, manage, engage in, be employed by, advise, make loans to, consult for, rent or lease to, or have any other interest in any Competitive Business (the term "Competitive Business" means a business engaged in the provision of services that are the same as or similar to an Engineering For Kids Business, including, but not limited to, the provision of youth educational and enrichment programs and services relating to the fields of math, science, technology or engineering; and the term "Competitive Business" also includes making use of the customer lists and other data
pertaining to the Engineering For Kids Business for any purpose whatsoever other than in connection with your Engineering For Kids Business pursuant to this Agreement); or
15.3.8. (ii) Divert or attempt to divert any business or customer, or potential business or customer, to any Competitive Business;
(c) Member covenants and agrees that during the Post-Term Period (defined below), except as otherwise approved in writing by EFK, Member shall not, either directly or indirectly, own, manage, engage in, be employed by, advise, make loans to, consult for, or have any other interest in any Competitive Business that is, or intends to operate, inside the Territory (defined in the Franchise Agreement) or inside any other Territory granted to another Engineering For Kids Business.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids FDD, members are subject to non-compete agreements during the term of the Franchise Agreement. Except when Engineering For Kids provides written approval, members are prohibited from engaging in or having any interest in any Competitive Business. A Competitive Business is defined as one that offers services similar to Engineering For Kids, specifically youth educational and enrichment programs in math, science, technology, or engineering. This also includes using Engineering For Kids' customer lists for any purpose outside of the franchise agreement. Members are also prohibited from diverting business or customers to any Competitive Business.
Post-term, the non-compete extends for a period defined as the Post-Term Period. During this time, members cannot own, manage, or be involved with any Competitive Business operating within the Territory defined in the Franchise Agreement or any other territory granted to another Engineering For Kids Business.
The restrictions also prevent members from soliciting or diverting current or former customers of the Engineering For Kids franchise to a Competitive Business during the Post-Term Period. These restrictions are designed to protect Engineering For Kids' market and confidential information by preventing franchisees and their members from using acquired knowledge and relationships to compete against the franchise, both during the active term and for a period after the agreement concludes.