What is Article 21 of the Epcon Communities Franchise Agreement about?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 21 of the Franchise Agreement is hereby deleted in its entirety and the following substituted therefor:
"Article 21 Franchisee Statements
- 21.1 By its signature set forth below, Franchisee agrees with the following statements:
- (a) As an inducement to Franchisor entering into this Agreement with Franchisee, Franchisee has made no misrepresentations in obtaining this Agreement.
- (b) Franchisee is aware of the fact that some franchisees may operate under different forms of agreements, and consequently, that Franchisor's obligations and rights in respect to its various franchisees may differ materially in certain circumstances.
- 21.2 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, Article 21 of the Franchise Agreement addresses franchisee statements, but this article is deleted in its entirety and replaced by an addendum for franchisees in Virginia and Maryland.
For Virginia franchisees, Article 21, titled "Franchisee Statements," includes the franchisee's agreement that they have not made any misrepresentations to obtain the agreement as an inducement for Epcon Communities to enter into the agreement. It also states that the franchisee is aware that other franchisees may operate under different agreements, which may result in materially different obligations and rights between Epcon Communities and its franchisees. Furthermore, no statement signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor.
For Maryland franchisees, Article 21 is also deleted and replaced in its entirety. The specific content of the replacement for Maryland is not detailed in the provided excerpt. Therefore, prospective franchisees should review the specific addendum for their state to understand their rights and obligations fully.