What is the franchisee prohibited from doing with information concerning the Epcon Communities Development System?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
dations or guidelines.
Article 10 Confidentiality; Non-Disclosure; Proprietary Information; Architectural Works
- 10.1 Franchisor and Franchisee agree that the Development System constitutes a "trade secret" as defined in Ohio Revised Code Section 1333.61, and, as such, is entitled to all rights and protection as are afforded to trade secrets under Ohio, and any other applicable, law.
- 10.2 Neither Franchisee nor any of Franchisee's affiliates, owners, agents, or employees shall communicate or otherwise divulge to, or use for the benefit of, any other person or entity, any information or knowledge, no matter how derived, concerning the Development System. Franchisee is granted the specific and limited right to divulge information respecting the Development System to those individuals who must have access thereto in order to develop any Projects which are the subject hereof. All information and knowledge provided by Franchisor to Franchisee, including by way of illustration but not of limitation, drawings, specifications, techniques, and written material, shall be deemed confidential for the purposes of this Agreement.
- 10.3 The Development System, including any modifications or derivations of the Development System or any of its parts, remains the exclusive property of Franchisor, even after its use by Franchisee. Franchisee agrees that it shall not use the Development System, or any portion thereof, at any time, except in strict accordance with the terms of this Agreement and, after the termination of this Agreement it shall not use in any manner the Development System or any of its parts, or any system, plans, materials, or designs resembling in any way the Development System.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are restricted from divulging information about the Development System. Specifically, franchisees (or related parties such as employees or owners) cannot communicate, divulge, or use any information or knowledge concerning the Epcon Communities Development System for the benefit of themselves or any third party. This restriction applies regardless of how the information was obtained. This is to protect Epcon Communities' trade secrets and proprietary information.
Epcon Communities grants franchisees a limited right to share information about the Development System only with individuals who need access to it for project development. All information provided by Epcon Communities, including drawings, specifications, techniques, and written materials, is considered confidential. Even after use by the franchisee, the Development System, including any modifications or derivations, remains the exclusive property of Epcon Communities.
After the termination of the Franchise Agreement, the franchisee is prohibited from using the Development System or any similar systems, plans, materials, or designs. Franchisees are also prohibited from building, licensing, transferring, reproducing, or duplicating the Epcon Communities Works or any derivative thereof, except as expressly provided in the Franchise Agreement. Franchisees must include notices of ownership of patent, copyright, and trademark rights in all advertising and sales literature related to the units as directed by Epcon Communities. These measures ensure the continued protection of Epcon Communities' intellectual property and trade secrets.
These restrictions are typical in franchising to protect the franchisor's competitive advantage and brand integrity. Prospective franchisees should carefully review Article 10 of the franchise agreement, which further details these confidentiality and non-disclosure obligations. Understanding these limitations is crucial for franchisees to avoid potential legal issues and maintain a positive relationship with Epcon Communities.