Are there non-competition covenants that apply to Epcon Communities franchisees during the term of the Sublicense Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| q. Non-competition covenants | Not Applicable | Non-competition covenants in Section 10.6 of the |
| during the term of the | Franchise Agreement apply during the term of the | |
| franchise | Sublicense Agreement. | |
| 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 the 2025 Epcon Communities Franchise Disclosure Document, non-competition covenants apply to franchisees during the term of the Sublicense Agreement. Specifically, Section 10.6 of the Franchise Agreement contains non-competition covenants that are in effect during the term of the Sublicense Agreement.
Additionally, Section 13.7 of the Franchise Agreement includes non-competition covenants that apply during the term of the Sublicense Agreement. These sections likely outline specific restrictions on the franchisee's ability to engage in similar or competitive businesses during the period they are operating under the Sublicense Agreement.
Item 17 also indicates that franchisees may not create a website using the name Epcon or any of its derivatives. This restriction is found in Section 10 of the Non-Disclosure and On-Line Information Access Agreement. This prevents franchisees from using the Epcon Communities brand name to create separate websites.