Does the agreement for Epcon Communities specify that the undersigned receives a direct personal benefit from the Franchise Agreement and/or Sublicense Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. The undersigned acknowledges that he or she is a principal, an officer, a director or the owner of capital stock | |
|---|---|
| or a partnership interest (or another membership or control interest or investor in Franchisee) in one or both of | |
| ("Franchisee") and/or ("Sublicensee"). Franchisee has entered | |
| into a Franchise Agreement dated, by and between Franchisee and Epcon | |
| Communities Franchising, LLC (the "Franchise Agreement"). Sublicensee has entered into a Sublicense Agreement | |
| dated, by and between Franchisee and Sublicensee with the consent of Epcon | |
| Communities Franchising, LLC (the "Sublicense Agreement"). The undersigned acknowledges the direct personal | |
| benefit accruing to him or her under one or both of the Franchise Agreement and the Sublicense Agreement. |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, the Personal Covenants and Agreement document for Epcon Communities states that the undersigned acknowledges a direct personal benefit accruing to them under the Franchise Agreement and the Sublicense Agreement. This acknowledgment is part of the agreement signed by principals, officers, directors, owners, investors, or partners of the franchisee or sub-licensee.
This clause is significant because it legally binds the individual to certain obligations and covenants within the Franchise Agreement, particularly those related to confidentiality, non-disclosure, project completion, default/termination, and indemnification/insurance. By acknowledging a direct personal benefit, the individual agrees to be personally responsible for upholding these obligations as if they were a direct party to the Franchise Agreement.
Furthermore, the agreement emphasizes that the undersigned will not use or divulge confidential information about the Epcon Communities Development System for their own benefit or the benefit of any third party. They also acknowledge that the Development System is the exclusive property of Epcon Communities Franchising, LLC, and can only be used in strict accordance with the terms of the Franchise Agreement and Sublicense Agreement. This protects Epcon Communities' intellectual property and trade secrets.
In practical terms, this means that individuals associated with the franchisee, such as investors or partners, cannot claim ignorance of the franchise terms or misuse the franchisor's proprietary information without facing potential legal consequences. This provision strengthens Epcon Communities' ability to enforce its franchise agreement and protect its brand standards and development system.