What rights are granted to an Epcon Communities franchisee regarding residential home development?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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You will be granted the right to use the Development System in developing, constructing and marketing attached and detached residential homes in residential community development projects at a specified location and within a specified territory using the Marks.
If you have not identified a specific property for development at the time you sign your Franchise Agreement with us, you must sign an Initial Market Area Agreement (the form of each is attached as Exhibit C to this disclosure document), which provides for a market area in which you may be able to locate your project and which gives you additional time to locate suitable property for your project. When you identify a property for your project, and we agree to that location, you will be required to sign a Market Area Agreement with us, which will have a smaller market area than that in the Initial Market Area Agreement. The size of the market area included in the Market Area Agreement will depend upon the number of Units
planned for your project. The form of Market Area Agreement is attached to this disclosure document as Exhibit D.
Under certain circumstances, we may grant you an extension of time to use the rights to the Development System granted to you under your Market Area Agreement, and under certain circumstances, even though your rights to use the Development System have terminated, you may complete construction of Units in your project (during a period of time not to exceed one year).
The general market for the Units to be developed, constructed and marketed by you includes those seeking to purchase ranch and townhouse style homes in low maintenance communities.
The majority of Epcon Communities' franchisees purchase raw ground on which they build the Units comprising their Epcon Communities project. While not typical, you may purchase developed lots in an existing real estate development for your project instead of raw ground.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, as a franchisee, you are granted the right to use the Development System in developing, constructing, and marketing attached and detached residential homes in residential community development projects. This right is confined to a specified location and territory, and you must use the Marks associated with the Development System. The general market for these Units includes those seeking to purchase ranch and townhouse style homes in low-maintenance communities.
If a franchisee has not identified a specific property for development when signing the Franchise Agreement, they must sign an Initial Market Area Agreement, which provides a market area to locate a project and gives additional time to find suitable property. Once a property is identified and agreed upon with Epcon Communities, the franchisee must sign a Market Area Agreement, which has a smaller market area than the initial agreement. The size of the market area in the Market Area Agreement depends on the number of Units planned for the project.
Epcon Communities may grant an extension of time to use the Development System rights under the Market Area Agreement. Even if the rights to use the Development System have terminated, a franchisee may be allowed to complete construction of Units in their project, but this period cannot exceed one year. The majority of Epcon Communities' franchisees typically purchase raw ground to build their Units, but purchasing developed lots in an existing real estate development is also an option.