Where in the Epcon Communities Franchise Agreement can I find information about non-competition covenants after the franchise is terminated or expires?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of two (2) years following the effective date of termination or expiration of this Agreement, whether by lapse of time or other cause, sale and/or assignment of the Epcon Communities franchise granted under the Franchise Agreement, or other cause, the undersigned shall not, directly or indirectly, either as a principal, agent, employee, officer, director or member of any corporation or other business entity, as a partner or sole proprietor, or in any other way engage in the ownership, development or construction of any real estate development project that is age-restricted or for which the targeted buyers are the 55+ home buyer, and includes, but is not limited to, detached and/or attached ranch-style homes (with or without basements or a second floor) that are similar to the homes and communities depicted in Epcon Communities Franchising, LLC's Development System, within (a) ten (10) miles of the geographic border of any "Initial Market Area" granted to any franchisee pursuant to any Initial Market Area Agreement, or any other agreement that is effective between such franchisee and Epcon Communities Franchising, LLC, (b) ten (10) miles of the geographic border of any "Market Area" granted to any franchisee pursuant to any Market Area Agreement or other agreement that is effective between such franchisee and Epcon Communities Franchising, LLC, (c) ten (10) miles of the geographic border of any "Reserved Market Area" reserved for any franchisee or prospective franchisee under any Market Hold Agreement or other agreement that is in effect between such party and
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, details regarding non-competition covenants post-termination or expiration of the Franchise Agreement can be found within a specific agreement. Specifically, for a period of two years after the termination or expiration of the agreement, franchisees are restricted from engaging in real estate development projects that target the 55+ home buyer demographic, or involve detached or attached ranch-style homes similar to those in the Epcon Communities Development System.
This restriction applies within a 10-mile radius of any Initial Market Area, Market Area, or Reserved Market Area granted to any franchisee or prospective franchisee. This includes areas defined under any Initial Market Area Agreement, Market Area Agreement, or Market Hold Agreement that is in effect between the franchisee and Epcon Communities Franchising, LLC.
This non-compete clause is designed to protect Epcon Communities' market and business model by preventing former franchisees from directly competing with existing franchisees or the franchisor in a similar market immediately after leaving the system. Franchisees should carefully consider the implications of this restriction, especially if their future business plans involve similar real estate development projects within the specified geographic areas after the franchise agreement ends.