According to the Epcon Communities FDD, who is considered the 'Franchisee'?

According to the 2025 Epcon Communities Franchise Disclosure Document, the term 'Franchisee' extends beyond just the individual or entity that signs the franchise agreement. Specifically, when the Franchisee is a corporation, limited liability company, or other business entity, the term includes any officer, director, shareholder, member, or holder of an ownership interest. If the Franchisee is a partnership, the term includes any partner of the Franchisee. This broad definition ensures that all individuals with significant control or ownership in the franchise operation are bound by the terms and restrictions outlined in the franchise agreement.

This definition has important implications for prospective franchisees. If you are considering forming a business entity to operate an Epcon Communities franchise, be aware that the restrictions in Section 10.6 of the franchise agreement (related to non-compete clauses) apply not only to the business entity itself but also to its officers, directors, shareholders, members, and partners. This means that these individuals are also restricted from engaging in competing real estate development projects during the term of the agreement.

Furthermore, the FDD states that for the purposes of franchisee lists, a franchisee is considered to be 'in operation' if they have signed both a Franchise Agreement and a Market Area Agreement with Epcon Communities. This clarifies the criteria Epcon Communities uses to determine whether a franchisee is actively operating and included in their franchise roster. This definition is important for understanding the scope and activity level of the Epcon Communities franchise system.