What is required for an Epcon Communities franchisee to be involved in a restricted real estate development project?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned agrees that it shall not, during the term of Franchise Agreement, without the prior written consent of Epcon Communities Franchising, LLC, directly or indirectly, either as a principal, agent, employee, officer, director or member of any corporation or other business entity, as a partner or sole proprietor, or in any other way, own, develop, construct or have any interest in any real estate development project that is agerestricted or for which the targeted buyers are the 55+ home buyer, and includes, but is not limited to, detached and/or attached ranch-style homes (with or without basements or a second floor) that are similar to the homes and communities depicted in Epcon Communities Franchising, LLC's Development System; provided however, this provision shall not apply to the involvement by the undersigned in the development of other Epcon Communities Projects by other franchisee business entities, or to any ownership by the undersigned of less than three percent (3%) of the outstanding stock of any publicly held corporation.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, a franchisee is generally prohibited from owning, developing, or constructing any age-restricted real estate development project, or projects targeting the 55+ home buyer, that are similar to the homes and communities in Epcon Communities's Development System. This restriction applies during the term of the Franchise Agreement.
However, there are exceptions to this restriction. An Epcon Communities franchisee can be involved in the development of other Epcon Communities projects by other franchisee business entities. Also, a franchisee can own less than three percent (3%) of the outstanding stock of any publicly held corporation without violating this restriction.
To engage in a restricted real estate development project outside of these exceptions, an Epcon Communities franchisee must obtain prior written consent from Epcon Communities Franchising, LLC. This requirement ensures that Epcon Communities maintains control over its brand and market positioning, preventing franchisees from engaging in projects that could compete with or dilute the Epcon Communities brand without explicit approval.