What is the nature of the right granted to the Epcon Communities franchisee 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, a franchisee is granted a non-exclusive right to access and use Higharc Services. Epcon Communities 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.
The franchisee must always adhere to Higharc's terms and conditions regarding the use of Higharc Services. Compliance with these terms is determined at the discretion of both Epcon Communities and Higharc. As a condition of using Higharc Services, the franchisee must also accept and abide by any usage conditions published or provided by Epcon Communities. Epcon Communities retains the sole discretion to determine the franchisee's compliance with these terms.
Epcon Communities can suspend, limit, or revoke a franchisee's right to use Higharc Services if it determines that the franchisee, its agents, employees, or owners have failed to comply with the requirements and obligations pertaining to the Higharc Services. Despite any suspension, limitation, or revocation, the franchisee's obligation to pay the Technology Royalty continues without reduction until all amounts owed under the addendum are fully paid.