What does the Epcon Communities agreement say about statements made by the franchisor?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, several addenda address the reliance on statements made by the franchisor, particularly in connection to state franchise laws. For franchisees in Virginia, North Dakota, and Indiana, the franchise agreement includes specific stipulations regarding statements made by Epcon Communities or its representatives.
Specifically, these addenda state that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under applicable state franchise law. This includes claims related to fraud in the inducement. Furthermore, franchisees cannot disclaim reliance on any statement made by Epcon Communities, franchise sellers, or anyone acting on behalf of Epcon Communities. This provision is designed to override any conflicting terms in other documents related to the franchise agreement.
These clauses protect franchisees by ensuring they retain their rights to pursue legal claims based on misrepresentations or fraudulent statements made by Epcon Communities during the franchise sales process. This means that even if a franchisee signs a document that appears to waive their right to sue, that waiver may not be enforceable if it contradicts these specific protections under state franchise law. Prospective franchisees should consult with a legal professional to fully understand their rights and protections under the franchise agreement and applicable state laws.