What is the scope of the Epcon Communities franchisee's use of Higharc Services limited to?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
e Franchisor's Development System, which plans Franchisor may change from time to time in accordance with the terms of the Franchise Agreement (the "Plans"); a community management tool that shows available Units and inventory Units; enhanced sales and marketing materials that allow for personalization of the Plans for each homebuyer's choices; the creation of job-specific construction drawings that match each homebuyer's structural option selections; and the generation of job-specific key measure reports for guidance in estimating quantities of materials needed for construction of a Unit (collectively, the "Higharc Services").
Franchisee, upon execution of this Addendum, shall be granted the non-exclusive right to access and use the Higharc Services, upon the terms and conditions set forth in this Addendum and the Franchise Agreement. Upon the execution of this Addendum, Franchisor shall cooperate and work with Franchisee to implement the use of the Higharc Services solely in connection with Franchisee's development of the Project and sales of the Units in the Project.
Franchisee shall at all times comply with any and all terms and conditions of Higharc related to the use of the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor and/or Higharc in their sole discretion. In addition, as one of the conditions of its right to use the Higharc Services, Franchisee agrees to accept and abide by any conditions of use published or provided by Franchisor from time to time in connection with the Higharc Services. Franchisee's compliance with such terms and conditions shall be determined by Franchisor in its sole discretion.
Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
If, in strict accordance with the terms of the Franchise Agreement, Franchisee requests any change or modification to the Development System in connection with the Plans in order to satisfy local zoning and/or building code requirements, and Franchisor provides its prior written consent to such change or modification to the Plans: (1) any such change(s) or modification(s) to the Plans shall be made solely by Higharc;
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, Epcon Communities franchisees are granted a non-exclusive right to access and use Higharc Services upon executing an addendum to the franchise agreement. Epcon Communities will then cooperate with the franchisee to implement the use of Higharc Services specifically for the franchisee's project development and unit sales within that project. The franchisee must always comply with Higharc's terms and conditions, as determined by Epcon Communities and/or Higharc. Epcon Communities may also set additional conditions of use, with which the franchisee must comply, as determined by Epcon Communities.
Epcon Communities has the discretion to suspend, limit, or revoke a franchisee's right to use Higharc Services if the franchisee, its agents, employees, or owners fail to meet the requirements and obligations pertaining to the Higharc Services. However, even if the right to use Higharc Services is suspended, limited, or revoked, the franchisee's obligation to pay the Technology Royalty continues without reduction until all amounts owed under the addendum are paid in full.
Higharc Inc. provides construction-related services through a cloud-based platform for Epcon Communities and its qualifying franchisees. These services may include access to current versions of the eight primary detached plans that are part of the "P-Series" (Palazzo, Portico, Promenade, Provenance) and "R-Series" (Capri, Salerno, Torino, Verona), a community management tool, enhanced sales and marketing materials, creation of job-specific construction drawings, and generation of job-specific key measure reports. These services may change over time without notice to the franchisee.