If the undersigned has a limited investment in the Project, what sections of the Epcon Communities Franchise Agreement are they personally bound by?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
g, LLC, and the undersigned agrees that he or she shall not use the Development System or any of its parts or any system, plans, materials, or designs resembling in any way the Development System except in strict accordance with the terms of the Franchise Agreement or as he or she may be directed by Franchisee, such direction to be in accordance with the terms of the Franchise Agreement, as determined by Epcon Communities Franchising, LLC in its sole discretion.
- c. If the undersigned has a limited investment or other ownership interest in the Project (as defined in the Franchise Agreement), the undersigned agrees that he or she has read and shall be personally bound by all of the recitations, obligations, and covenants of Franchisee contained in Sections 5.2, 5.6, and 5.7 of Article 5 of the Franchise Agreement, entitled "Franchisee's Obligations", Article 10 of the Franchise Agreement, entitled "Confidentiality; Non-Disclosure; Proprietary Information", and Section 11.2.2 of the Franchise Agreement, entitled "Completion of Project(s)".
- d.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, if an individual has a limited investment or other ownership interest in a project, they are personally bound by specific sections of the Franchise Agreement. These sections include 5.2, 5.6, and 5.7 of Article 5, which outline the "Franchisee's Obligations." Additionally, they are bound by Article 10, which covers "Confidentiality; Non-Disclosure; Proprietary Information," and Section 11.2.2 of the Franchise Agreement, addressing "Completion of Project(s)."
This means that even with a limited investment, the individual is held responsible for understanding and adhering to the obligations of the franchisee related to project execution, maintaining confidentiality, and protecting proprietary information. This ensures that all parties involved in the Epcon Communities project, regardless of their investment level, are committed to upholding the brand's standards and protecting its intellectual property.
Epcon Communities also stipulates that if the individual breaches any of these obligations, Epcon Communities Franchising, LLC, the Franchisee, or Sublicensee can seek temporary and permanent injunctions and orders of specific performance to prevent further violations. The agreement emphasizes that these obligations are considered fair and reasonable and will not deprive the individual of their livelihood. This clause underscores the seriousness with which Epcon Communities views adherence to these contractual obligations, even for those with limited investment in the project.