What documents related to personal covenants must an Epcon Communities franchisee provide to the franchisor?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
5.5 Franchisee shall provide to Franchisor at the time of execution of this Agreement copies of Exhibit "3" attached to this Agreement (the "Personal Covenants Document") executed by each of the principals, officers, owners and directors of Franchisee or any sublicensee and any other individuals or entities with any ownership or control interest whatsoever (including any investors) in Franchisee or any sublicensee, and, during the term of this Agreement, if a change occurs in the principals, officers, owners, investor and/or directors of Franchisee or any sublicensee or in the other individuals or entities with an ownership or control interest in Franchisee or any sublicensee, Franchisee agrees that it will promptly deliver to Franchisor copies of the Personal Covenants Document executed by each of the new principals, officers, owners, or directors of Franchisee or other individuals or entities with an ownership or control interest (including any investors) in Franchisee or any sublicensee.
5.6 Additionally, Franchisee shall provide to Franchisor copies of the document included as Exhibit "3A" attached to this Agreement executed by each person who may be provided, either by Franchisee, Franchisor, or any sublicensee with more detailed information about the Development System than has been or will be disclosed to the general public, but whom is not otherwise subject to the requirements respecting the Personal Covenants Document set forth in Section 5.5 or to the provisions of the Personal Covenants Document.
A copy of the document included as Exhibit "3A" shall be individually executed before any such person is provided access to all or any portion of the Development System.
Franchisee's obligation to provide such executed copies of the document included as Exhibit "3A" to Franchisor shall be ongoing throughout the term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, a franchisee must provide two specific documents related to personal covenants to the franchisor. The first is a copy of the "Personal Covenants Document" (Exhibit 3 of the Franchise Agreement). This document must be executed by all principals, officers, owners, directors, and any individuals or entities with ownership or control interest in the franchisee or any sublicensee, including investors. If there are any changes in these roles during the term of the agreement, the franchisee must promptly provide copies of the Personal Covenants Document executed by the new individuals.
The second document is included as Exhibit "3A" of the Franchise Agreement. This document must be executed by anyone who receives more detailed information about the Epcon Communities Development System than what is disclosed to the general public, but who is not already subject to the Personal Covenants Document requirements. This includes individuals provided with such information by the franchisee, franchisor, or any sublicensee. The franchisee must ensure this document is executed before the person gains access to the Development System, and this obligation continues throughout the term of the Franchise Agreement.
These requirements ensure that all individuals with significant control or access to confidential information related to the Epcon Communities franchise are bound by the terms of the Personal Covenants, protecting the franchisor's interests and proprietary information. The franchisee's compliance with these provisions is essential for maintaining the integrity of the franchise system and preventing unauthorized use or disclosure of sensitive information.