Who is required to execute the Personal Covenants Document for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
5.5 Franchisee shall provide to Franchisor at the time of execution of this Agreement copies of Exhibit "3" attached to this Agreement (the "Personal Covenants Document") executed by each of the principals, officers, owners and directors of Franchisee or any sublicensee and any other individuals or entities with any ownership or control interest whatsoever (including any investors) in Franchisee or any sublicensee, and, during the term of this Agreement, if a change occurs in the principals, officers, owners, investor and/or directors of Franchisee or any sublicensee or in the other individuals or entities with an ownership or control interest in Franchisee or any sublicensee, Franchisee agrees that it will promptly deliver to Franchisor copies of the Personal Covenants Document executed by each of the new principals, officers, owners, or directors of Franchisee or other individuals or entities with an ownership or control interest (including any investors) in Franchisee or any sublicensee.
5.6 Additionally, Franchisee shall provide to Franchisor copies of the document included as Exhibit "3A" attached to this Agreement executed by each person who may be provided, either by Franchisee, Franchisor, or any sublicensee with more detailed information about the Development System than has been or will be disclosed to the general public, but whom is not otherwise subject to the requirements respecting the Personal Covenants Document set forth in Section 5.5 or to the provisions of the Personal Covenants Document.
A copy of the document included as Exhibit "3A" shall be individually executed before any such person is provided access to all or any portion of the Development System.
Franchisee's obligation to provide such executed copies of the document included as Exhibit "3A" to Franchisor shall be ongoing throughout the term of this Agreement.
- 5.7 If Franchisee is a corporation or other business entity, it shall have the following legend conspicuously printed on the face of each of its stock certificates or other certificates evidencing ownership:
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the Personal Covenants Document must be executed by specific individuals and entities associated with the franchisee or any sublicensee. This includes all principals, officers, owners, and directors. Additionally, any individuals or entities with any ownership or control interest, including investors, are also required to execute this document.
Furthermore, Epcon Communities requires that anyone who receives more detailed information about the Development System than what is disclosed to the general public must also execute a separate document included as Exhibit "3A". This applies even if these individuals are not otherwise subject to the Personal Covenants Document requirements outlined for principals, officers, owners, and directors. This executed document must be provided before the person gains access to the Development System.
Epcon Communities mandates that the franchisee ensures all relevant parties execute these documents, both at the initial agreement and throughout the term of the agreement if there are any changes in principals, officers, owners, investors, directors, or other individuals with ownership or control interests. For franchisees that are corporations or other business entities, a specific legend must be conspicuously printed on the face of each stock certificate or ownership certificate, indicating that the transfer of the certificate is subject to the terms and conditions of the Franchise Agreement with Epcon Communities Franchising, LLC.