During the term of the Engineering For Kids agreement, what is required to own or engage in a Competitive Business?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
17.3. During Term
Accordingly, you agree that during the term of this Agreement, you will not, without our prior written consent, either directly or indirectly through any other person or entity:
17.3.1. 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 Data for any purpose whatsoever other than in connection with your Engineering For Kids Business pursuant to this Agreement); or
17.3.2. Divert or attempt to divert any business, customer, or participant, or potential business, customer, or participant, to any Competitive Business.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, franchisees are restricted from engaging in any Competitive Business without prior written consent from Engineering For Kids.
A Competitive Business is defined as any business that offers services similar to Engineering For Kids, including youth educational and enrichment programs in math, science, technology, or engineering. This also includes using customer lists and data related to the Engineering For Kids Business for any purpose outside of the franchise agreement.
The agreement specifies that franchisees cannot directly or indirectly own, manage, be employed by, advise, make loans to, consult for, rent or lease to, or have any other interest in any Competitive Business. Additionally, franchisees are prohibited from diverting or attempting to divert any business, customer, or participant to a Competitive Business. These restrictions are in place to protect Engineering For Kids' System, trade secrets, and confidential information, and to encourage the free exchange of ideas and information among franchisees.