When is an Epcon Communities franchisee required to sign a Market Area Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
If you have not identified a specific property for development at the time you sign your Franchise Agreement with us, you must sign an Initial Market Area Agreement (the form of each is attached as Exhibit C to this disclosure document), which provides for a market area in which you may be able to locate your project and which gives you additional time to locate suitable property for your project. When you identify a property for your project, and we agree to that location, you will be required to sign a Market Area Agreement with us, which will have a smaller market area than that in the Initial Market Area Agreement. The size of the market area included in the Market Area Agreement will depend upon the number of Units
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, a franchisee is required to sign a Market Area Agreement when they identify a specific property for development and Epcon Communities agrees to that location. This agreement defines a specific, smaller market area compared to the Initial Market Area Agreement. The size of the market area in the Market Area Agreement depends on the number of Units planned for the project.
Prior to identifying a specific property, a franchisee signs an Initial Market Area Agreement at the time of signing the Franchise Agreement. This Initial Market Area Agreement provides a broader market area, allowing the franchisee time to locate a suitable property for their project. The Market Area Agreement then replaces the initial agreement once a property is identified and approved by Epcon Communities.
It is important for prospective franchisees to understand the distinction between the Initial Market Area Agreement and the Market Area Agreement, as each defines different rights and obligations regarding the territory in which they can operate. The specific terms of both agreements are detailed in Exhibits C and D of the Franchise Disclosure Document, respectively, and should be carefully reviewed with legal counsel.