Are there non-competition covenants that apply to Epcon Communities franchisees after the Sublicense Agreement is terminated or expires?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| r. Non-competition covenants | Not Applicable | Non-competition covenants in Section 13.7 of the |
| after the franchise is | Franchise Agreement apply during the term of the | |
| terminated or expires | Sublicense Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, non-competition covenants outlined in Section 13.7 of the Franchise Agreement apply during the term of the Sublicense Agreement, even after the Sublicense Agreement is terminated or expires. This means that even after the franchise relationship ends, the franchisee is still restricted by the non-competition terms.
These post-term non-competition covenants are designed to protect Epcon Communities' market share and proprietary information. They typically prevent former franchisees from engaging in similar businesses within a specified geographic area for a certain period. The specific restrictions, including the duration and geographic scope, would be detailed in Section 13.7 of the Franchise Agreement, which is not included in this excerpt.
Prospective franchisees should carefully review Section 13.7 of the Franchise Agreement to fully understand the extent of these post-termination restrictions. Understanding these covenants is crucial for planning future business ventures after the franchise agreement concludes. It is important to consider how these restrictions might impact the franchisee's ability to work in the real estate development sector after their relationship with Epcon Communities ends.