What must an Epcon Communities franchisee ensure regarding their employees and confidentiality?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Franchise Agreement, you acknowledge that your knowledge of the Development System and all processes, services and products, formulae, technology and know-how in the development, construction and marketing of an Epcon Communities project is derived from our proprietary and confidential information and that this information is a trade secret. You must maintain as confidential all information, knowledge or know-how concerning the Development System and the methods of operations under the Development System and any other matters which could properly be considered to be a part of the Development System. You may neither divulge this information to any person, other than your employees to the extent necessary to develop your project(s), nor permit persons not authorized under the Franchise Agreement to inspect the Operations Manual, other manuals disclosed in Item 11 of this disclosure document, blueprints or other materials provided to you by us. You must ensure that your employees comply with the confidentiality obligations in the Franchise Agreement. You are only permitted to use the Development System to develop projects as approved by us under the Franchise Agreement and Market Area Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–54)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, franchisees must ensure their employees comply with the confidentiality obligations outlined in the Franchise Agreement. This is because Epcon Communities considers the Development System, including all processes, services, products, formulae, technology, and know-how related to the development, construction, and marketing of Epcon Communities projects, as proprietary and confidential trade secrets.
The franchisee's knowledge of the Development System is derived from Epcon Communities' confidential information, making it crucial to maintain the confidentiality of all related information, knowledge, and methods of operation. Franchisees are permitted to share this information only with their employees to the extent necessary for project development. They are prohibited from divulging this information to any other person or allowing unauthorized individuals to inspect the Operations Manual, other manuals disclosed in Item 11, blueprints, or other materials provided by Epcon Communities.
This obligation highlights the importance of carefully managing access to sensitive information and implementing appropriate safeguards to prevent unauthorized disclosure. Prospective franchisees should carefully review the confidentiality obligations within the Franchise Agreement to fully understand their responsibilities and potential liabilities related to protecting Epcon Communities' trade secrets.