After the franchise is terminated or expires, are there any non-competition covenants applicable to Epcon Communities franchisees?
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 Epcon Communities' 2025 Franchise Disclosure Document, non-competition covenants apply during the term of the Sublicense Agreement, even after termination or expiration. Specifically, the table in Item 17 indicates that non-competition covenants outlined in Section 13.7 of the Franchise Agreement remain in effect throughout the term of the Sublicense Agreement, which suggests that these covenants extend beyond the termination or expiration of the franchise itself.
This means that even after an Epcon Communities franchise agreement ends, the franchisee may still be restricted from engaging in competitive activities. The exact nature and scope of these restrictions are detailed in Section 13.7 of the Franchise Agreement, which is not provided in this excerpt.
Prospective franchisees should carefully review Section 13.7 of the Franchise Agreement to fully understand the post-termination non-competition obligations. It is important to determine the geographic scope, the types of activities restricted, and the duration of the non-compete clause to assess its potential impact on future business opportunities after the franchise agreement concludes.