After the Epcon Communities franchise agreement terminates, can the franchisee contest the validity of the Marks?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, the obligations of
Franchisee provided in Article 10 hereof, the remedies provided to Franchisor in Article 14 hereof, and the provisions of Sections 6.3, 20.2 and 20.3 hereof shall survive the termination of this Agreement.
- 13.6 Upon termination or expiration of this Agreement, Franchisee shall immediately terminate its use of the Marks, the Epcon Communities Works and the Development System and promptly return to Franchisor all materials provided to it by Franchisor.
Franchisor may, without prior notice, enter upon the premises of any Project of Franchisee and remove or obliterate any Marks at Franchisee's expense.
Franchisee shall indemnify and hold Franchisor harmless from and against any claims that Franchisor damaged property in the process of removing or obliterating such Marks.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
Based on the 2025 Epcon Communities Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must immediately stop using the Marks, the Epcon Communities Works, and the Development System. The franchisee is also required to promptly return all materials provided by Epcon Communities. Epcon Communities has the right to enter the franchisee's project premises without notice to remove or obliterate any Marks at the franchisee's expense. The franchisee is responsible for indemnifying and holding Epcon Communities harmless from any claims related to property damage during the removal or obliteration of the Marks.
These stipulations ensure that upon termination, the franchisee completely disassociates from the Epcon Communities brand and system. This protects Epcon Communities' brand identity and proprietary information. The franchisor's right to enter the former franchisee's premises to remove branding elements underscores the importance of a clean break.
For a prospective franchisee, this means understanding that the rights to use Epcon Communities' trademarks and systems are strictly tied to the active term of the franchise agreement. After the agreement ends, all branding and operational methods must be discontinued immediately. The financial responsibility for removing any remaining Marks from the project site falls on the franchisee, so it is important to factor in these potential costs when considering the franchise agreement.