What is the condition for the Epcon Communities franchisee to maintain the right to use the Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
-specific key measure reports for guidance in estimating quantities of materials needed for construction of a Unit (collectively, the "Higharc Services").
Franchisee, upon execution of this Addendum, shall be granted the non-exclusive right to access and use the Higharc Services, upon the terms and conditions set forth in this Addendum and the Franchise Agreement. Upon the execution of this Addendum, Franchisor shall cooperate and work with Franchisee to implement the use of the Higharc Services solely in connection with Franchisee's development of the Project and sales of the Units in the Project.
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.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, an Epcon Communities franchisee's right to use Higharc Services is contingent upon several conditions. The franchisee must comply with all terms and conditions set by Higharc related to the use of Higharc Services, with compliance determined at the discretion of Epcon Communities and/or Higharc. Additionally, the franchisee must accept and abide by any conditions of use published or provided by Epcon Communities regarding the Higharc Services. Failure to comply with these requirements can lead to suspension, limitation, or revocation of the franchisee's right to use the Higharc Services, as determined by Epcon Communities.
Even if the franchisee's right to use Higharc Services is suspended, limited, or revoked, the obligation to pay the Technology Royalty continues until all amounts owed to Epcon Communities are paid in full. Furthermore, Epcon Communities has the right to amend or terminate its agreement with Higharc for the Higharc Services at any time without notice to the franchisee. If the agreement between Epcon Communities and Higharc expires or is terminated, the franchisee's use of Higharc Services and the related addendum automatically terminate without notice.
The franchisee's right to use Higharc Services also automatically terminates, without notice, upon the termination or expiration of the Franchise Agreement, any default by the franchisee of its obligations under the addendum, the Franchise Agreement, or other agreements (beyond any applicable cure period), or the closing of the sale of the last unit in the franchisee's project. These conditions ensure that the franchisee's access to and use of Higharc Services are aligned with their ongoing compliance and the overall health of the franchise agreement.