According to the Epcon Communities agreement, what is the consideration for the agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| For valuable consideration, receipt of which is hereby acknowledged, Epcon Communities Franchising, LLC | |
|---|---|
| ("Epcon Communities"), hereby consents to the assignment, as evidenced by the Lender Assignment Agreement, of | |
| the Epcon Communities Franchising, LLC Franchise Agreement and Market Area Agreement or Small Market Area | |
| Agreement, as applicable, attached hereto as Exhibit "A" by, as Assignor, to | |
| , as Assignee, and agrees that such Franchise Agreement and Market Area | |
| Agreement or Small Market Area Agreement, as applicable, shall remain in full force and effect in accordance with their | |
| terms, as amended by the Lender Assignment Agreement; provided and conditioned, however, upon fulfillment by both | |
| Assignor and Assignee, of the following conditions: | |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the agreement between Epcon Communities Franchising, LLC, and the assignee involves valuable consideration. This consideration is acknowledged through the consent to the assignment as evidenced by the Lender Assignment Agreement. This agreement pertains to the Epcon Communities Franchising, LLC Franchise Agreement and Market Area Agreement or Small Market Area Agreement. The consent ensures that the original agreements remain in full effect, adhering to their terms as amended by the Lender Assignment Agreement. However, this is conditional upon both the assignor and assignee fulfilling specific conditions.
This arrangement implies that the assignee is stepping into the shoes of the assignor, taking on the rights and responsibilities of the original franchise agreement. The 'valuable consideration' typically involves financial investment, business expertise, and commitment to upholding the Epcon Communities brand standards. The Lender Assignment Agreement suggests that a lender is involved, possibly providing financing to facilitate the transfer of the franchise.
For a prospective franchisee, this highlights the importance of understanding all associated agreements, including the original Franchise Agreement, Market Area Agreement, and any amendments introduced by the Lender Assignment Agreement. It also underscores the necessity of meeting all conditions set forth by both the assignor and assignee to ensure the continuity and validity of the franchise agreement. Prospective franchisees should seek legal counsel to fully understand their obligations and rights under these agreements.
It is important to note that the specific details of what constitutes the 'valuable consideration' are not explicitly detailed in this excerpt but are acknowledged as being received. A prospective franchisee should seek clarification from Epcon Communities regarding the exact nature of this consideration to fully understand their obligations.