What are the conditions under which Epcon Communities must consent to a franchisee relocating a project?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
hereto cannot mutually agree on a Market Area within eighteen (18) months of the Effective Date, then this Initial Market Area and the Franchise Agreement shall automatically terminate and Franchisor and Franchisee shall release each other of any future obligations under this Initial Market Area Agreement and the Franchise Agreement, whether monetary or otherwise, except for those provisions that specifically survive termination.
The Initial Market Area for this Initial Market Area Agreement shall be as depicted on the map attached hereto as Exhibit "A" and incorporated herein for all purposes.
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- Franchisor, having granted to Franchisee a license to use the Development System pursuant to the terms and conditions of the Franchise Agreement, desires to further protect its materials, reputation, and goodwill and to geographically limit use by Franchisee of the Development System in an ordered and controlled manner. Franchisee agrees that such restrictions are essential to the success of the Project and the projects of other franchisees and licensees of Franchisor.
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- Franchisee agrees to fully implement the Development System only within the Initial Market Area depicted on Exhibit "A". Franchisee agrees that Franchisor's review and expressed opinion about any Project location proposed by Franchisee is only Franchisor's opinion respecting how the site meets Franchisor's criteria for locations for Epcon Communities Projects and is based upon Franchisor's limited information about Franchisee's Initial Market Area. It does not constitute a representation, warranty, or an acknowledgment by Franchisor or any employee or agent of Franchisor that an Epcon Communities Project at the proposed location will be successful.
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- Franchisee shall make all payments specified in the Franchise Agreement to Franchisor.
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- Franchisee shall not use or allow to be used the Development System anywhere except at the agreed location within the Initial Market Area specified in this Initial Market Area Agreement executed by and between Franchisor and Franchisee. Franchisee agrees that any unauthorized and unacknowledged use would be in violation of the terms of this Initial Market Area Agreement and of the Franchise Agreement and further agrees that any such breach shall afford to Franchisor each of the rights and remedies set forth in the Franchise Agreement.
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- Except as otherwise provided for in this Initial Market Area Agreement, during the term of the Franchise Agreement, Franchisee shall have certain limited exclusivity rights (the "Limited Rights") to the Initial Market Area depicted on Exhibit "A" pursuant to the terms and conditions set forth below in this Section 7.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Epcon Communities franchisees are granted a license to use the Development System within a specific Initial Market Area, as depicted in Exhibit "A." The agreement emphasizes that franchisees must fully implement the Development System only within this designated area. Epcon Communities's review of any proposed project location is simply an opinion based on their criteria and limited information about the franchisee's market area; it doesn't guarantee success.
The FDD stipulates that franchisees cannot use the Development System outside the agreed location within their Initial Market Area. Unauthorized use is considered a violation of both the Initial Market Area Agreement and the Franchise Agreement, potentially leading to remedies outlined in the Franchise Agreement.
Therefore, the FDD does not explicitly detail conditions under which Epcon Communities must consent to a franchisee relocating a project. Instead, it focuses on restricting the use of the Development System to the initially agreed-upon location and market area. A prospective franchisee should seek clarification from Epcon Communities regarding the possibility of project relocation and the specific circumstances under which it might be considered.