Which article of the Epcon Communities Franchise Agreement is entirely deleted and replaced by the Addendum?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, concerning Franchisee Statements, is entirely deleted and replaced by the addendum. This change is specified in multiple addenda, including those for Virginia, Maryland, and North Dakota. The addendum clarifies and potentially modifies the franchisee's obligations and rights related to statements made during the franchise agreement process.
Specifically, the addendum replaces the original Article 21 with a new version that includes statements from the franchisee acknowledging they made no misrepresentations to induce the agreement and that they are aware franchisees may operate under different agreements. It also includes a clause ensuring that no statement or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor.
This modification is important for prospective Epcon Communities franchisees as it provides additional protection under state franchise laws. It ensures that franchisees cannot inadvertently waive their rights or claims due to statements made during the initial agreement. The inclusion of this clause may offer franchisees greater legal recourse in case of disputes or misrepresentations by Epcon Communities.