What is the geographic scope of the Epcon Communities franchisee's right to access and use the Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchisor's Development System, which plans Franchisor may change from time to time in accordance with the terms of the Franchise Agreement (the "Plans"); a community management tool that shows available Units and inventory Units; enhanced sales and marketing materials that allow for personalization of the Plans for each homebuyer's choices; the creation of job-specific construction drawings that match each homebuyer's structural option selections; and the generation of job-specific key measure reports for guidance in estimating quantities of materials needed for construction of a Unit (collectively, the "Higharc Services").
Franchisee, upon execution of this Addendum, shall be granted the non-exclusive right to access and use the Higharc Services, upon the terms and conditions set forth in this Addendum and the Franchise Agreement. Upon the execution of this Addendum, Franchisor shall cooperate and work with Franchisee to implement the use of the Higharc Services solely in connection with Franchisee's development of the Project and sales of the Units in the Project.
Franchisee shall at all times comply with any and all terms and conditions of Higharc related to the use of the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor and/or Higharc in their sole discretion. In addition, as one of the conditions of its right to use the Higharc Services, Franchisee agrees to accept and abide by any conditions of use published or provided by Franchisor from time to time in connection with the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, upon executing the addendum related to Higharc Services, a franchisee is granted a non-exclusive right to access and use these services. The franchisor will then cooperate with the franchisee to implement the use of Higharc Services specifically for the franchisee's project development and unit sales within that project.
This implies that the franchisee's right to use Higharc Services is tied to their specific project and is not a blanket authorization for any geographic area. The services are intended to aid in the development and sales of units within a defined project. This also means that the franchisee's access and use are subject to the terms and conditions set forth in both the addendum and the franchise agreement.
It is important to note that Epcon Communities retains the discretion to suspend, limit, or revoke a franchisee's right to use Higharc Services if the franchisee fails to comply with the requirements and obligations pertaining to these services. However, even if the right to use the Higharc Services is suspended, limited, or revoked, the franchisee's obligation to pay the Technology Royalty continues until all amounts owed under the addendum are paid in full.