Does the Epcon Communities agreement specify what happens if a Sublicensee's property is sold after levy?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Section 5 of this Sublicense Agreement, the sublicense granted pursuant to Section 1 of this Sublicense Agreement shall remain in full force and effect until the earlier of (a) the date of the sale of the last unit of Sublicensee's Epcon Communities project (b) the date that is one year after the completion of construction (as defined by Section 11.1 of the Franchise Agreement) of the last unit of Sublicensee's Epcon Communities project or (c) the date of the termination of the Franchise Agreement (the "Term").
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
Based on the 2025 Epcon Communities Franchise Disclosure Document excerpts provided, there is no information regarding the specifics of what happens to a Sublicensee's property if it is sold after levy. The document does outline the terms of the Sublicense Agreement, including conditions for termination and obligations of the Sublicensee, but it does not address scenarios involving the sale of property after a levy.
However, the FDD does mention the Sublicensee's obligations and the conditions under which the Sublicense Agreement can be terminated. Specifically, the sublicense remains effective until the sale of the last unit of the Sublicensee's Epcon Communities project, one year after the completion of construction of the last unit, or the termination of the Franchise Agreement. Upon termination or expiration, the Sublicensee must discontinue all use of the Epcon Communities Development System and Marks.
To fully understand the implications of a property sale after levy, a prospective Epcon Communities franchisee should seek clarification from the franchisor. Specifically, they should inquire about the procedures, responsibilities, and potential financial or legal ramifications in such a situation. This information is crucial for making an informed decision about investing in an Epcon Communities franchise.