What constitutes a 'transfer' of rights under the Epcon Communities Sublicense Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| k. “Transfer” by franchisee -- | Section 1 | Transfer includes any transfer of the rights granted under |
| defined | the Sublicense Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a transfer under the Sublicense Agreement includes any transfer of the rights granted under that agreement. This definition is found within a table summarizing key provisions of the Sublicense Agreement.
This broad definition means any action that shifts the franchisee's rights to another party is considered a transfer. Because the definition is so broad, it is important for a prospective franchisee to understand what specific actions might be interpreted as a transfer.
Since the FDD excerpt does not list specific examples or scenarios that would constitute a transfer, it would be prudent for a prospective Epcon Communities franchisee to seek clarification from the franchisor regarding what specific actions would be considered a transfer of rights. Understanding this definition is crucial, as unauthorized transfers can lead to breaches of the Sublicense Agreement.