For how long after termination or expiration of the Epcon Communities agreement is the franchisee restricted from engaging in similar real estate development projects?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of two (2) years following the effective date of termination or expiration of this Agreement, whether by lapse of time, sale and/or assignment of the Epcon Communities franchise granted hereunder, or other cause, Franchisee shall not, directly or indirectly, either as a principal, agent, employee, officer, director or member of any corporation or other business entity, as a partner or sole proprietor, or in any other way engage in the ownership, development or construction of any real estate development project that is age restricted or for which the targeted buyers are the 55+ home buyer and includes, but is not limited to, detached and/or attached ranch-style homes (with or without basements or a second floor) that are similar to the homes and communities depicted in Franchisor's Development System, within (a) ten (10) miles of the geographic border of any "Initial Market Area" granted to any franchisee pursuant to any Initial Market Area Agreement, or any other agreement that is effective between such franchisee and Franchisor, (b) ten (10) miles of the geographic border of any "Market Area" granted to any franchisee pursuant to any Market Area Agreement, or any other agreement that is effective between such franchisee and Franchisor, (c) ten (10) miles of the geographic border of any "Reserved Market Area" reserved for any franchisee or prospective franchisee under any Market Hold Agreement or other agreement that is in effect between such party and Franchisor, or, (d) ten (10) miles of any real estate development project of Epcon Communities, LLC or of any business entity affiliated with Epcon Communities, LLC.
For purposes of this Section 13.7, the term "Franchisee" shall include any officer, director, shareholder, member or holder of an ownership interest in Franchisee, if Franchisee is a corporation, limited liability company or other business entity, and any partner of Franchisee, if Franchisee is a partnership.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, a franchisee is restricted from engaging in similar real estate development projects for a period of two years following the termination or expiration of the franchise agreement. This restriction applies regardless of whether the termination or expiration occurs due to the passage of time, sale or assignment of the franchise, or any other reason.
During this two-year period, the franchisee is prohibited from directly or indirectly participating in the ownership, development, or construction of any real estate project that is age-restricted or targets buyers aged 55 and over. This includes detached or attached ranch-style homes similar to those depicted in Epcon Communities' development system. The restriction applies if the project is located within ten miles of any Initial Market Area, Market Area, or Reserved Market Area granted to any franchisee, or within ten miles of any real estate development project of Epcon Communities or its affiliates.
This restriction extends not only to the franchisee but also to any officer, director, shareholder, member, or holder of an ownership interest in the franchisee if the franchisee is a corporation, limited liability company, or other business entity, as well as any partner of the franchisee if the franchisee is a partnership. This broad definition ensures that the non-compete obligations cannot be easily circumvented through business structuring. This non-compete clause is a standard practice in franchising to protect the brand and market share of the franchisor and other franchisees.