Despite the Assignment, what liability does the Assignor retain to Epcon Communities?

According to the 2025 FDD, even if an Epcon Communities franchisee (the Assignor) assigns their Franchise Agreement and Market Area Agreement to another party (the Assignee), the Assignor remains liable to Epcon Communities for all obligations outlined in those agreements. This means that the original franchisee cannot escape their financial and contractual responsibilities to Epcon Communities simply by transferring the franchise to someone else.

This continuing liability is significant for the Assignor. If the Assignee fails to meet the obligations under the Franchise Agreement or Market Area Agreement, Epcon Communities can still pursue the original franchisee for any outstanding debts, required actions, or breaches of contract. This protects Epcon Communities' interests and ensures that there is always a responsible party accountable for the franchise's performance.

For a prospective franchisee considering selling their Epcon Communities franchise, this clause highlights the importance of carefully vetting potential buyers. The original franchisee should ensure that the Assignee is financially stable and capable of fulfilling all franchise obligations, as the Assignor will remain on the hook if the Assignee fails to do so. This also underscores the need for a thorough understanding of the Franchise Agreement and Market Area Agreement before entering into any assignment agreement.