Does the Epcon Communities franchise agreement contain non-competition covenants that apply after the franchise is terminated or expires?

According to the 2025 Epcon Communities Franchise Disclosure Document, the franchise agreement does address non-competition covenants both during and after the term of the franchise, but the application of these covenants varies depending on the specific agreement in question.

Specifically, the Sublicense Agreement incorporates non-competition covenants from the Franchise Agreement. The table in Item 17 indicates that non-competition covenants outlined in Section 10.6 of the Franchise Agreement apply during the term of the Sublicense Agreement. Furthermore, non-competition covenants in Section 13.7 of the Franchise Agreement also apply during the term of the Sublicense Agreement after the franchise is terminated or expires.

In contrast to the Sublicense Agreement, the Market Hold Agreement states that non-competition covenants do not apply either during the term of the franchise or after the franchise is terminated or expires. Similarly, the Mortgage agreement states that non-competition covenants do not apply either during the term of the franchise or after the franchise is terminated or expires. Therefore, prospective franchisees should carefully review the specific agreements applicable to their situation to understand the scope and duration of any non-competition obligations.