Are there any restrictions on Epcon Communities, its affiliates, or other franchisees from soliciting customers?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not restricted from soliciting any customers to purchase Units developed by you, regardless of who they are or where they reside, whether directly or through other channels such as the Internet, telemarketing or other direct marketing. There are no restrictions on us, our affiliates, Epcon, Epcon Carolinas, Epcon Indiana, Epcon Tennessee, and Epcon Georgia or other franchisees (or our existing licensees) from soliciting customers, regardless of the customers' locations, whether directly or through other channels such as the Internet, telemarketing or other direct marketing. You will not receive any compensation from any sales made by us, Epcon, Epcon Carolinas, Epcon Indiana, Epcon Tennessee, Epcon Georgia or other Epcon Communities franchisees (or licensees) to customers located within your Market Area.
We intend to sell franchises to other franchisees to use the Development System.
Source: Item 12 — TERRITORY (FDD pages 48–50)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are not restricted from soliciting customers to purchase units they develop, regardless of who the customers are or where they reside. This includes solicitations made directly or through channels like the Internet, telemarketing, or other direct marketing methods. Similarly, Epcon Communities, its affiliates (Epcon Carolinas, Epcon Indiana, Epcon Tennessee, and Epcon Georgia), and other franchisees also face no restrictions on soliciting customers, irrespective of the customers' locations or the channels used for solicitation. This open solicitation policy allows franchisees to pursue customers without geographical limitations. However, franchisees will not receive compensation for sales made by Epcon Communities, its affiliates, or other franchisees to customers located within the franchisee's Market Area. This means that while franchisees can solicit customers anywhere, they only directly benefit from sales within their designated Market Area.
This lack of restriction on soliciting customers benefits Epcon Communities franchisees by allowing them to cast a wide net in their marketing efforts, potentially reaching a larger customer base. However, the lack of compensation for sales outside their Market Area means franchisees should focus their marketing efforts primarily within their designated area to maximize direct returns. The FDD also states that Epcon Communities intends to sell franchises to other franchisees to use the Development System, which could increase competition among franchisees soliciting the same broader customer base.
It is important to note that while there are no restrictions on soliciting customers, the Market Area Agreement grants franchisees exclusive rights to develop Epcon Communities projects within their specified Market Area. This means that while other franchisees or Epcon Communities itself can solicit customers in a franchisee's Market Area, they cannot build competing projects there during the term of the agreement. This balance between open solicitation and territorial exclusivity is a key aspect of the Epcon Communities franchise model.