Does Epcon Communities have the right to grant other franchises and licenses for the use of the Marks?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.6 Franchisee expressly acknowledges and agrees that this license to use the Marks is nonexclusive and that Franchisor has and retains the rights, among others:
- (a) To grant other franchises and licenses for the use of the Marks, in addition to those already granted to existing Epcon Communities franchisees and to Franchisee;
- (b) To develop and establish other systems and programs utilizing the same or similar Marks, or any other proprietary Marks, and to grant franchises and/or licenses therein without providing Franchisee any rights therein.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the franchise agreement stipulates that the license granted to a franchisee for using the Marks is nonexclusive. Epcon Communities retains the right to grant other franchises and licenses for the use of the Marks to other parties, including new franchisees. This is in addition to the rights already granted to existing Epcon Communities franchisees.
This means that as an Epcon Communities franchisee, you will not have exclusive rights to the Marks in your territory. Epcon Communities can authorize other franchisees or licensees to use the Marks, even if they operate in the same geographic area as you. This could potentially lead to increased competition for customers and market share.
Furthermore, Epcon Communities reserves the right to develop and establish other systems and programs that utilize the same or similar Marks, or any other proprietary Marks. They can grant franchises or licenses for these systems without providing any rights to the existing franchisees. This allows Epcon Communities to expand its brand and business operations through different channels, which may or may not directly benefit you as a franchisee.
As a prospective franchisee, it is important to understand that the rights to use the Marks are not exclusive and that Epcon Communities has broad discretion in how it utilizes and licenses its intellectual property. You should consider the potential impact of this non-exclusive arrangement on your business and market opportunities.