Who is responsible for managing and operating the business franchised under the Epcon Communities agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
12.2 If Franchisee is a corporation, partnership, limited liability company, or similar entity, the terms of Section 12.1 shall apply to any sale, resale, pledge, assignment, transfer or encumbrance of any voting stock of, or other ownership interest in, Franchisee.
10.6 Franchisee shall not, during the term of this Agreement, without the prior written consent of Franchisor, 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 age-restricted or for which the targeted buyers are the 55+ home buyer, and includes, without limitation, 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 Franchisor's Development System; provided however, this provision shall not apply to the involvement by Franchisee in the development of other Epcon Communities Projects by other franchisee business entities, or to any ownership by Franchisee 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 Franchise Disclosure Document, the franchisee is responsible for managing and operating the business. The franchisee must adhere to Epcon Communities' uniform standards, procedures, and plans. The success of the franchisee's use of the Development System depends on this adherence, as well as the franchisee's business abilities and other variables.
The franchisee agrees to preserve the integrity of Epcon Communities' materials, reputation, and goodwill. The franchisee acknowledges that the execution of either an Initial Market Area Agreement or a Market Area Agreement is required when the Franchise Agreement is executed.
If the franchisee is a corporation, partnership, limited liability company, or similar entity, specific conditions apply to the sale, resale, pledge, assignment, transfer, or encumbrance of any voting stock or ownership interest in the franchisee. The franchisee must also ensure that they do not engage in any real estate development project that is age-restricted or targets the 55+ home buyer demographic, similar to Epcon Communities' projects, without prior written consent from Epcon Communities.