What is the obligation of Epcon Communities to cooperate with the franchisee to implement the use of the Higharc Services?

According to the 2025 Epcon Communities Franchise Disclosure Document, upon the execution of the addendum related to Higharc Services, Epcon Communities is obligated to cooperate and work with the franchisee. This cooperation is specifically aimed at implementing the use of Higharc Services in connection with the franchisee's project development and the sales of units within that project.

This obligation means that Epcon Communities must actively assist the franchisee in integrating and utilizing the Higharc Services platform. Higharc Services include access to current versions of specified detached plans, a community management tool, enhanced sales and marketing materials, creation of job-specific construction drawings, and generation of key measure reports. Epcon Communities' cooperation ensures that franchisees can effectively leverage these tools for their project's development and sales activities.

However, Epcon Communities also retains certain rights regarding the franchisee's use of Higharc Services. Epcon Communities can 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. Despite any such suspension, limitation, or revocation, the franchisee's obligation to pay the Technology Royalty continues until all amounts owed under the addendum are paid in full. Additionally, Epcon Communities has the right to amend or terminate its agreement with Higharc at any time without notice to the franchisee, which would result in the termination of the franchisee's use of Higharc Services.