What are the consequences if an Epcon Communities franchisee communicates or divulges confidential information?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned agrees not to communicate or otherwise divulge to, or use for the benefit of, himself or herself or any third party any information or knowledge concerning the Development System.
The undersigned agrees that, in the event he or she breaches any obligation or covenant set forth or referenced herein, Epcon Communities Franchising, LLC and/or Franchisee and/or Sublicensee shall be entitled, without bond, to the entry of temporary and permanent injunctions and orders of specific performance as necessary to prohibit any violation of the terms of this Personal Covenants and Agreement document or any applicable law, ordinance, or regulation, or which is dishonest or misleading to Epcon Communities Franchising, LLC or the general public.
Article 10 Confidentiality; Non-Disclosure; Proprietary Information; Architectural Works
- 10.2 Neither Franchisee nor any of Franchisee's affiliates, owners, agents, or employees shall communicate or otherwise divulge to, or use for the benefit of, any other person or entity, any information or knowledge, no matter how derived, concerning the Development System.
You agree not to communicate or otherwise
divulge to, or use for the benefit of yourself or any third party any information or knowledge concerning such systems, products or services.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, franchisees are bound by confidentiality agreements, and breaches can lead to significant repercussions. Specifically, franchisees agree not to communicate or divulge information concerning the Epcon Communities Development System to any third party. This includes systems, products, and services exclusive to Epcon Communities. The Development System is considered a trade secret, as defined in Ohio Revised Code Section 1333.61, entitling it to legal protection under applicable laws.
Breaching the confidentiality obligations can result in legal action. Epcon Communities Franchising, LLC, has the right to seek temporary and permanent injunctions and orders of specific performance, without bond, to prevent any violation of the terms outlined in the Personal Covenants and Agreement. This means that if a franchisee discloses confidential information, Epcon Communities can obtain a court order to immediately stop the franchisee from further disseminating such information and compel them to adhere to the confidentiality terms.
Furthermore, Epcon Communities may take immediate action, without notice, such as deleting the franchisee's information or information pertaining to them and revoking their authorization to use the Epcon Communities Intranet. This could severely impact a franchisee's ability to access essential resources and communicate within the Epcon Communities network, potentially hindering their business operations.
The agreement emphasizes that these restrictions are considered fair and reasonable and will not deprive the franchisee of their livelihood. However, prospective franchisees should carefully consider the scope of confidential information and ensure they have systems in place to protect it, as breaches can lead to swift and impactful consequences, including legal action and loss of access to critical business tools and information.