For Epcon Communities, what determines the Effective Date of the Market Hold Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The effective date of this Market Hold Agreement (the "Effective Date") shall be the date upon which the Franchisor receives the Initial Market Hold Fee from Franchisee or which the Franchisor executes this Market Hold Agreement, whichever is later.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the effective date of the Market Hold Agreement is determined by whichever event occurs later: either the date Epcon Communities receives the Initial Market Hold Fee from the franchisee, or the date that Epcon Communities executes the Market Hold Agreement. This date is referred to as the "Effective Date."
For a prospective Epcon Communities franchisee, this means the Market Hold Agreement, which reserves a specific market area for the franchisee, officially begins on the later of these two dates. The franchisee's period to develop a project in the reserved market area is twelve months from the effective date.
It is important for the franchisee to understand that both actions, payment of the fee and execution by Epcon Communities, are required for the agreement to become effective. This ensures that Epcon Communities has received the necessary payment and has formally agreed to the terms before the market hold is in place.