What is an Epcon Communities franchisee required to do if they are involved in litigation regarding the Marks?

Based on the 2025 Franchise Disclosure Document, an Epcon Communities Sublicensee must promptly notify both the Franchisee and Franchisor of any unauthorized use of the Development System, Epcon Communities Works, or the Marks by third parties, as soon as they become aware of it. However, the document specifies that Epcon Communities Franchising, LLC has the sole and exclusive right and discretion to initiate infringement or unfair competition proceedings related to the Development System, Epcon Communities Works, or the Marks.

This means that while an Epcon Communities franchisee (or in this case, a Sublicensee) is obligated to report any potential misuse of Epcon Communities's intellectual property, they do not have the authority to independently pursue legal action to protect those assets. The responsibility for taking legal action rests solely with Epcon Communities Franchising, LLC.

This arrangement protects the consistency and control of the brand. It ensures that any legal actions are aligned with Epcon Communities's overall strategy. For a prospective franchisee, this means they can focus on their core business operations, trusting that Epcon Communities will handle any legal battles concerning brand protection. However, it also means that the franchisee must rely on Epcon Communities to take appropriate action, and they may have limited direct influence over the legal strategy pursued.