Is compliance with the terms and conditions of the Sublicense Agreement a requirement for the sublicense to be valid for Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby expressly grants to Sublicensee a limited, nontransferable and royalty free sublicense to use the Development System, Epcon Communities Works and the Marks solely in connection with the development and marketing of an Epcon Communities project pursuant to a Market Area Agreement to be executed by and between Sublicensee and Franchisor and subject to the terms and conditions set forth in the Franchise Agreement and this Sublicense Agreement. Compliance with all terms and conditions of this Sublicense Agreement, is a strict condition precedent to this sublicense.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, compliance with the terms and conditions of the Sublicense Agreement is a strict requirement for the sublicense to be valid. Specifically, the grant of the sublicense to use the Development System, Epcon Communities Works, and the Marks is subject to the terms and conditions outlined in both the Franchise Agreement and the Sublicense Agreement.
This means that a Sublicensee's use of Epcon Communities' intellectual property, such as the Development System and Marks, is contingent upon adhering to all stipulations within the Sublicense Agreement. Failure to comply with these terms would render the sublicense invalid, potentially leading to a breach of contract and copyright infringement.
Epcon Communities emphasizes the importance of protecting its intellectual property rights, and strict adherence to the Sublicense Agreement is a key mechanism for ensuring this protection. Prospective Sublicensees should carefully review and understand all terms and conditions before entering into a Sublicense Agreement to avoid any unintended violations and maintain the validity of their sublicense.