What are the two exceptions to the confidentiality requirement for Engineering For Kids franchisees?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
Member shall not, during the term of the Franchise Agreement or thereafter, communicate, divulge or use, for any purpose other than the operation of the Engineering For Kids Business, any confidential information, knowledge, trade secrets or know-how which may be communicated to Member or which Member may learn by virtue of Member's relationship with Franchisee. All information, knowledge and know-how relating to EFK, its business plans, Engineering For Kids Businesses, or the System ("Confidential Information") is deemed confidential, except for information that Member can demonstrate came to Member's attention by lawful means prior to disclosure to Member; or which, at the time of the disclosure to Member, had become a part of the public domain.
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to the 2025 Engineering For Kids Franchise Disclosure Document, there are two exceptions to the confidentiality requirements for franchisees. Franchisees are not bound to confidentiality for information that they can demonstrate came to their attention by lawful means prior to its disclosure to them. Additionally, franchisees are not bound by confidentiality for information that, at the time of its disclosure, had already become part of the public domain.
This means an Engineering For Kids franchisee is not required to keep information confidential if they can prove they already knew it through legal means before the franchisor shared it. Similarly, if the information was already publicly available when the franchisor disclosed it, the franchisee has no obligation to keep it secret.
These exceptions are fairly standard in franchise agreements. They protect franchisees from being penalized for using information they legitimately obtained independently or that is already generally known. However, the burden of proof rests on the franchisee to demonstrate that the information falls under one of these exceptions.