What sections of the Epcon Communities Franchise Agreement are specifically excluded from the sublicense?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Grant of Sublicense. Franchisee hereby expressly grants to Sublicensee a limited, nontransferable and royalty free sublicense to use the Development System, Epcon Communities Works and the Marks solely in connection with the development and marketing of an Epcon Communities project pursuant to a Market Area Agreement to be executed by and between Sublicensee and Franchisor and subject to the terms and conditions set forth in the Franchise Agreement and this Sublicense Agreement. Compliance with all terms and conditions of this Sublicense Agreement, is a strict condition precedent to this sublicense. This sublicense shall not include the grant of rights to, or the imposition of obligations upon, Franchisee provided under Sections 3.4 or 4.1 of the Franchise Agreement. Article 21 of the Franchise Agreement shall not be included in the sublicense hereunder. The Franchise Agreement shall remain in full force and effect subsequent to execution of this Sublicense Agreement. Notwithstanding the foregoing, this Section 1 shall not prevent the Sublicensee from using those materials provided by Franchisor to Franchisee pursuant to Section 4.1 of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, the Epcon Communities sublicense agreement does not include all sections of the franchise agreement. Specifically, Sections 3.4 and 4.1 of the Franchise Agreement are excluded from the sublicense. Additionally, Article 21 of the Franchise Agreement is not included in the sublicense.
However, the exclusion of Section 4.1 does not prevent the sublicensee from using materials provided by Epcon Communities to the franchisee under that section. This ensures the sublicensee can still access necessary resources for development and marketing, despite the general exclusion of the section from the sublicense terms.
The Franchise Agreement remains in full effect even after the Sublicense Agreement is executed. This means the franchisee still has obligations and rights under the original agreement, separate from what the sublicensee assumes. The sublicensee is bound by the terms and conditions of the Sublicense Agreement, with compliance being a strict condition for the sublicense to be valid.