Does the definition of 'transfer' by a franchisee in the Epcon Communities Sublicense Agreement include all rights granted under the 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, the definition of 'transfer' by a franchisee in the Sublicense Agreement encompasses any transfer of the rights granted under that agreement. This is detailed in Item 17, which summarizes key provisions of the franchise and related agreements.
For a prospective Epcon Communities franchisee, this means that any attempt to transfer, sell, or assign any portion of the rights conferred by the Sublicense Agreement is considered a transfer under the terms of the agreement. This is a standard clause in franchise agreements, allowing the franchisor to maintain control over who is operating under their brand and using their system.
It is important for franchisees to understand that this definition of 'transfer' triggers certain requirements and restrictions, such as the need for franchisor approval. While the specific conditions for franchisor approval are noted as 'Not Applicable' in the table, the franchisee should still clarify with Epcon Communities the exact procedures and potential limitations regarding any transfer of rights under the Sublicense Agreement.