Does the Epcon Communities franchise agreement include any non-competition covenants that apply after the franchise is terminated or expires?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| r. Non-competition covenants | Not Applicable | Non-competition covenants in Section 13.7 of the |
| after the franchise is | Franchise Agreement apply during the term of the | |
| terminated or expires | Sublicense Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to the 2025 FDD, the Sublicense Agreement for Epcon Communities states that non-competition covenants within the Franchise Agreement apply during the term of the Sublicense Agreement, even after termination or expiration. Specifically, Section 13.7 of the Franchise Agreement contains these post-term non-compete obligations.
This means that after an Epcon Communities franchise agreement is terminated or expires, the franchisee is still subject to certain restrictions that prevent them from competing with the franchisor. The exact nature and scope of these restrictions are detailed in Section 13.7 of the Franchise Agreement, which prospective franchisees should carefully review.
It is important for potential Epcon Communities franchisees to understand the terms of these non-competition covenants, including the duration and geographic scope of the restrictions, as they could significantly impact the franchisee's ability to engage in similar business activities after the franchise relationship ends. Franchisees should seek legal counsel to fully understand the implications of these covenants.