What is the purpose of the 'Market Area' in the Epcon Communities Market Area Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT "B"*
(to Initial Market Area Agreement – Market Area Agreement)
EXHIBIT D OF FRANCHISE DISCLOSURE DOCUMENT
(Exhibit "B" to Initial Market Area Agreement and Exhibit "2" to Franchise Agreement)
MARKET AREA AGREEMENT
(For use with franchisees located in the States of California, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia and Wisconsin.)
| This Market Area Agreement (this "Market Area Agreement") is made by and between Epcon Communities Franchising, LLC, an Ohio limited liability company having its principal business offices at 500 Stonehenge Parkway, | ||
|---|---|---|
| a(n) | Dublin, Ohio 43017 (hereinafter referred to as "Franchisor"), and, | |
| having | ||
| its | ||
| principal | ||
| business | ||
| offices | ||
| at | ||
| (hereinafter referred to as "Franchisee"), | ||
| to be effective as of the date executed by Franchisor (the "Effective Date"). | ||
| Pursuant to the terms of the Franchise Agreement, dated, made by and between the parties | ||
| hereto (the "Franchise Agreement"), Franchisor and Franchisee make the following agreement, intending to be legally | ||
| bound thereby: | ||
| 1. | Each term set forth herein having initial capital letters shall have the meaning as set forth herein or, if not defined | |
| herein, as specified in the Franchise Agreement. | ||
| 2. | For purposes of this Market Area Agreement, the term "Market Area" is intended to define a geographic area that | |
| will generate sufficient purchaser support for a development. The area included within the Market Area typically | ||
| takes into consideration existing natural and man-made boundaries and socioeconomic conditions. The Market | ||
| Area for this Market Area Agreement shall be as depicted on the map attached hereto as Exhibit "A" and | ||
| incorporated herein for all purposes. | ||
| 3. | Franchisor, having granted to Franchisee a license to use the Development System pursuant to the terms and | |
| conditions of the Franchise Agreement, desires to further protect its materials, reputation, and goodwill and to | ||
| geographically limit use by Franchisee of the Development System in an ordered and controlled manner. | ||
| Franchisee agrees that such restrictions are essential to the success of the Project and the projects of other | ||
| franchisees and licensees of Franchisor. | ||
| 4. | Franchisee agrees to fully implement the Development System only within the Market Area depicted on Exhibit "A" | |
| and at the location or address hereinafter specified: | ||
| Proposed Name of Project: | ||
| Projected Number of Units in the Project: | ||
| Franchisee agrees that Franchisor's review and expressed opinion about Franchisee's proposed location is only | ||
| Franchisor's opinion respecting how the site meets Franchisor's criteria for locations for Epcon Communities | ||
| Projects and is based upon Franchisor's limited information about Franchisee's Market Area. It does not constitute | ||
| a representation, warranty, or an acknowledgment by Franchisor or any employee or agent of Franchisor that an | ||
| Epcon Communities Project at the proposed location will be successful. | ||
| 5. | Franchisee shall make all payments specified in the Franchise Agreement to Franchisor. |
7.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the Market Area in the Market Area Agreement is intended to define a geographic area that will generate sufficient purchaser support for a development. The Market Area typically considers existing natural and man-made boundaries and socioeconomic conditions. The specific Market Area is depicted on a map attached as Exhibit "A" to the agreement.
Epcon Communities grants the franchisee a license to use its Development System, and the Market Area agreement protects Epcon Communities' materials, reputation, and goodwill by geographically limiting the franchisee's use of the Development System in a controlled manner. These restrictions are deemed essential for the success of the franchisee's project and the projects of other Epcon Communities franchisees and licensees.
The franchisee must fully implement the Development System only within the designated Market Area. Epcon Communities' review and opinion about a proposed project location is only an opinion based on its criteria and limited information about the franchisee's Market Area. It does not guarantee the success of the project. The franchisee is solely responsible for deciding to proceed with development based on their own independent analysis. The franchisee also agrees to make all payments specified in the Franchise Agreement to Epcon Communities.