What is the purpose of the Development System created by Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
incipal business offices at having (hereinafter referred to as "Franchisee"), to be effective as of the date executed by Franchisor. For and in consideration of the covenants and promises herein contained, Franchisor and Franchisee make the following agreement, intending to be legally bound thereby:
Article 1 The Development System and Franchisee's Acknowledgments
- 1.1 Franchisor, as a result of the expenditure of substantial time, effort, and money, has created a unique Development System (as hereinafter defined) for the purpose of providing guidance for development of detached and attached homes. As a part of the franchise and license granted in Article 3 hereof, Franchisor shall provide the materials and services described in Article 4 hereof to enable Franchisee to implement the Development System at the location and within the area as set forth in the Initial Market Area Agreement (the "Initial Market Area Agreement") substantially in the form attached hereto as Exhibit "1" or the Market Area Agreement ("Market Area Agreement") substantially in the form attached hereto as Exhibit "2".
- 1.2 Franchisee, being cognizant of the distinctive significance and value thereof, desires to make use of and to enjoy the benefits of Franchisor's Development System. The success of its use of the Development System depends upon its strict adherence to Franchisor's uniform standards, procedures, and plans, as well as Franchisee's business abilities and other variables. Franchisee agrees to preserve in every way possible the integrity of Franchisor's materials, reputation, and goodwill. Franchisee acknowledges that execution of either an Initial Market Area Agreement or a Market Area Agreement is required at the same time as the execution of this Agreement.
Article 2 Definitions of Certain Terms
- 2.1 Each term set forth in this Section 2.1 shall have the meaning specified herein:
- 2.1.1 "Commencement of Construction Activity" shall mean Franchisee's commencement of any activity on the Project site that is a precursor to or involves grubbing or clearing land, land development or building construction.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the Development System is a unique system created by Epcon Communities through substantial investment of time, effort, and money. The purpose of this system is to provide guidance for the development of detached and attached homes. As part of the franchise agreement, Epcon Communities provides materials and services to enable franchisees to implement the Development System within their designated area, as defined in the Initial Market Area Agreement or Market Area Agreement.
The success of an Epcon Communities franchisee's use of the Development System hinges on strict adherence to Epcon Communities' uniform standards, procedures, and plans, as well as the franchisee's own business abilities. Franchisees must preserve the integrity of Epcon Communities' materials, reputation, and goodwill. Franchisees acknowledge that executing either an Initial Market Area Agreement or a Market Area Agreement is required when signing the Franchise Agreement.
The Development System is considered a trade secret under Ohio law and is protected accordingly. Franchisees, their affiliates, owners, agents, or employees are prohibited from divulging or using any information about the Development System for the benefit of others. Franchisees are granted a specific license to use the Development System, emphasizing the confidential and proprietary nature of the system and the importance of protecting it from unauthorized use or disclosure.