Who is considered a third-party beneficiary of the Epcon Communities Sublicense Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- **ACKNOWLEDGMENT OF EXISTENCE OF THIRD-PARTY BENEFICIARY OF THIS AGREEMENT, EPCON COMMUNITIES FRANCHISING, LLC.
FRANCHISEE AND SUBLICENSEE ACKNOWLEDGE AND AGREE THAT EACH CONTEMPLATES AND INTENDS THAT: (A) THIS AGREEMENT AND ITS SPECIFIC PROVISIONS ARE INTENDED DIRECTLY AND PRIMARILY TO BENEFIT FRANCHISOR, AND FRANCHISOR IS INTENDED TO BE, AND SHALL BE, A THIRD-PARTY BENEFICIARY OF THIS AGREEMENT; (B) SUBLICENSEE, IN EXECUTING THIS AGREEMENT, SHALL ASSUME A DIRECT OBLIGATION TO FRANCHISOR, AS SUCH THIRD-PARTY BENEFICIARY, TO PERFORM CERTAIN OF FRANCHISEE'S OBLIGATIONS UNDER THE FRANCHISE AGREEMENT; AND (C) FRANCHISOR, AS SUCH THIRD-PARTY 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 AGREEMENT.
FRANCHISOR SHALL BE ENTITLED TO ANY REMEDIES AVAILABLE AT LAW, IN EQUITY, OR PROVIDED IN THE FRANCHISE AGREEMENT FOR ANY BREACH BY SUBLICENSEE 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 Franchising, LLC is considered a third-party beneficiary of the Sublicense Agreement. This means that Epcon Communities is intended to directly benefit from the agreement between the franchisee and the sublicensee. As a third-party beneficiary, Epcon Communities is entitled to enforce the provisions of the Sublicense Agreement, even though it is not a direct party to the agreement.
Specifically, the franchisee and sublicensee acknowledge that the Sublicense Agreement is designed to primarily benefit Epcon Communities. The sublicensee assumes a direct obligation to Epcon Communities to perform certain of the franchisee's duties under the Franchise Agreement. This arrangement gives Epcon Communities the right to take action or pursue remedies if it believes it is necessary to enforce the Sublicense Agreement or the Franchise Agreement.
Epcon Communities is entitled to legal and equitable remedies, as well as those provided in the Franchise Agreement, if the sublicensee breaches any provision of the Sublicense Agreement or any Market Area Agreement. This ensures that Epcon Communities has the legal means to protect its interests and ensure compliance with its franchise system, even when a sublicense is involved. This is a standard practice in franchising to protect the franchisor's brand and system standards.