What are Epcon Communities franchisees prohibited from doing with confidential information?
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 Epcon Communities' 2025 Franchise Disclosure Document, franchisees are restricted in how they handle confidential information related to the Development System. Franchisees acknowledge that their knowledge of the Development System, including processes, services, products, formulas, technology, and know-how, is derived from Epcon Communities' proprietary and confidential information, which constitutes a trade secret.
Specifically, franchisees must keep all information, knowledge, and know-how concerning the Development System and its operational methods confidential. They are prohibited from divulging this information to anyone, except to their employees to the extent necessary for project development. Furthermore, franchisees cannot allow individuals unauthorized under the Franchise Agreement to inspect the Operations Manual, other manuals disclosed in Item 11, blueprints, or any other materials provided by Epcon Communities. Franchisees must also ensure that their employees adhere to these confidentiality obligations.
In practical terms, this means an Epcon Communities franchisee must implement strict internal controls to protect the franchisor's confidential information. This includes limiting access to sensitive documents and systems, training employees on confidentiality obligations, and establishing procedures to prevent unauthorized disclosure. The franchisee is only allowed to utilize the Development System for projects approved by Epcon Communities under the Franchise Agreement and Market Area Agreement.