Under the Engineering For Kids franchise agreement, what is the definition of 'Competitive Businesses'?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 53–138)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business that provides services similar to those offered by an Engineering For Kids franchise. This includes businesses involved in youth educational and enrichment programs related to math, science, technology, or engineering.
This definition extends to any entity where a franchisee is involved, whether directly or indirectly, such as through ownership, management, employment, advising, lending, or consulting. It also encompasses situations where the franchisee has any other form of interest in such a business. The restriction applies not only to direct competitors but also to any business that makes use of Engineering For Kids' customer lists or data for purposes outside of the franchise agreement.
This non-compete clause is in effect during the term of the Franchise Agreement. Post-termination, the restrictions continue for a specified period and within a defined geographic area, as detailed in the agreement. This is designed to protect Engineering For Kids' market share and confidential information by preventing franchisees from leveraging their knowledge and resources gained from the franchise to benefit a competing business.
For a prospective franchisee, this means they are restricted from engaging in any competitive business activities during their agreement with Engineering For Kids and for a period after the agreement terminates. It is important to fully understand the scope and duration of these restrictions, as well as the geographic limitations, to avoid potential legal issues and ensure compliance with the franchise agreement.