Who is included in the definition of 'Franchisee' for the purposes of the non-compete clause in the Epcon Communities agreement?

According to Epcon Communities' 2025 Franchise Disclosure Document, the definition of "Franchisee" in Section 10.6 of the franchise agreement, which pertains to non-compete restrictions, extends beyond just the franchisee entity itself. This is important because it broadens the scope of who is bound by the non-compete clause.

Specifically, if the franchisee is a corporation, limited liability company, or other business entity, the term "Franchisee" includes any officer, director, shareholder, member, or holder of an ownership interest in that entity. If the franchisee is a partnership, the term includes any partner of the franchisee. This means that individuals associated with the franchisee entity, such as officers or shareholders, are also subject to the non-compete restrictions outlined in Section 10.6.

This definition ensures that individuals with significant influence or ownership in the franchisee business are also restricted from engaging in competitive activities during the term of the agreement. This is a common practice in franchising to prevent individuals from circumventing the non-compete clause by operating through a business entity. Prospective franchisees should carefully consider the implications of this extended definition and ensure that all relevant parties are aware of and willing to comply with the non-compete restrictions.