What is the condition for the Epcon Communities franchisee to continue using the Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall at all times comply with any and all terms and conditions of Higharc related to the use of the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor and/or Higharc in their sole discretion. In addition, as one of the conditions of its right to use the Higharc Services, Franchisee agrees to accept and abide by any conditions of use published or provided by Franchisor from time to time in connection with the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor in its sole discretion.
Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, a franchisee's right to use Higharc Services is conditional upon several factors. The franchisee must consistently comply with all terms and conditions set by Higharc related to the use of their services. Epcon Communities and/or Higharc have the sole discretion to determine whether the franchisee is meeting these compliance standards. Additionally, franchisees must accept and adhere to any conditions of use published or provided by Epcon Communities regarding Higharc Services, with Epcon Communities retaining the sole discretion to assess compliance.
Epcon Communities has the authority to suspend, limit, or revoke a franchisee's access to Higharc Services if it determines that the franchisee, its agents, employees, or owners have failed to meet the requirements and obligations associated with these services. This gives Epcon Communities significant control over who can access and utilize Higharc Services within their franchise system.
It's important to note that even if a franchisee's access to Higharc Services is suspended, limited, or revoked, their obligation to pay the Technology Royalty continues without reduction. This financial obligation remains in effect until all amounts owed by the franchisee to Epcon Communities under the addendum are fully paid. This means that franchisees must continue to pay for the technology even if they are not allowed to use it, which could create a financial burden if the services are essential to their operations.
Prospective franchisees should carefully consider these conditions and obligations related to Higharc Services. Understanding the compliance requirements, the potential for service suspension, and the ongoing financial obligations is crucial for making an informed decision about investing in an Epcon Communities franchise. It would be prudent to discuss these aspects in detail with Epcon Communities to fully understand the implications and potential risks.