What does the undersigned agree not to do with information or knowledge concerning the Epcon Communities Development System?

According to Epcon Communities' 2025 Franchise Disclosure Document, the undersigned agrees not to communicate, divulge, or use any information or knowledge concerning the Epcon Communities Development System for their own benefit or the benefit of any third party. This restriction is in place to protect the exclusive property rights of Epcon Communities Franchising, LLC in its Development System. The Development System includes proprietary trade secret information developed by Epcon Communities, architectural works, prototypical plans, technical drawings, and other copyrighted works.

This means that individuals associated with an Epcon Communities franchise, such as franchisees, their employees, or investors, are prohibited from sharing or exploiting confidential information related to the Epcon Communities business model, construction methods, marketing strategies, or any other aspect of the Development System. This restriction applies both during the term of the Franchise Agreement and potentially after its termination, as specified in other sections of the agreement. The FDD also states that the undersigned acknowledges that the Development System is the exclusive property of Epcon Communities Franchising, LLC, and agrees not to use the Development System or any of its parts, or any system, plans, materials, or designs resembling it, except in strict accordance with the Franchise Agreement and the Sublicense Agreement.

Epcon Communities also emphasizes that the Development System includes confidential and proprietary trade secret information developed after considerable time, effort, and expense, which derives independent economic value from not being generally known. The agreement clarifies that neither the Franchise Agreement, the Sublicense Agreement, nor the Personal Covenants and Agreement create any implied license to use, copy, distribute, or create derivative works from any copyrighted work owned by Epcon Community Franchising, LLC, and that the only licenses to do so are those expressly set forth in those agreements. This underscores the importance of maintaining the confidentiality and proprietary nature of the Development System to protect Epcon Communities' competitive advantage.

For a prospective franchisee, this underscores the importance of understanding the scope of confidential information and the restrictions on its use. It also highlights the need to ensure that all personnel and investors associated with the franchise are aware of and comply with these confidentiality obligations. Failure to adhere to these restrictions could result in legal action, including injunctions and orders of specific performance, to prevent any violation of the terms outlined in the agreement.