Who is considered a third-party beneficiary of the Assignment Agreement related to Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- **Third-Party Beneficiary.
Assignor and Assignee acknowledge and agree that each contemplates and intends that: (a) this Assignment Agreement and its specific provisions are intended directly to benefit Epcon Communities, and Epcon Communities is intended to be, and shall be, a third-party beneficiary of this Assignment Agreement; (b) Assignee, if it decides to use the Development System to complete any unfinished Project(s) pursuant to Section 2 above, shall assume a direct obligation to Epcon Communities, as such third-party beneficiary, to perform certain of Assignor's obligations under the Franchise Agreement and the Market Area Agreement; and (c) Epcon Communities, as such thirdparty beneficiary, shall be conferred with the rights, in its sole discretion, to itself take any action or pursue any remedy that it deems necessary in order to enforce the provisions hereof or of the Franchise Agreement and to which it would be entitled as a party enforcing this Assignment Agreement.
Epcon Communities shall be entitled to any remedies available at law, in equity, or provided in the Franchise Agreement for any breach by Assignee of any provision hereof or of any Market Area Agreement.**
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, Epcon Communities is explicitly identified as a third-party beneficiary in the Assignment Agreement. This agreement outlines the terms under which an assignor (the original franchisee) transfers their rights and obligations to an assignee (another party).
Specifically, the agreement states that it is intended to directly benefit Epcon Communities. This gives Epcon Communities certain rights and powers, including the ability to enforce the provisions of the Assignment Agreement and the Franchise Agreement. If the assignee uses the Development System to complete unfinished projects, they assume a direct obligation to Epcon Communities as a third-party beneficiary.
As a third-party beneficiary, Epcon Communities is conferred with the rights, in its sole discretion, to take any action or pursue any remedy that it deems necessary to enforce the provisions of the Assignment Agreement or the Franchise Agreement. This includes any remedies available at law, in equity, or as provided in the Franchise Agreement for any breach by the assignee of any provision in the Assignment Agreement or any Market Area Agreement. This ensures that Epcon Communities retains control and oversight over the use of its Development System and the adherence to its franchise standards, even when franchise rights are transferred.