What is the effect of the Addendum on the Franchise Agreement for Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Addendum to Epcon Communities Franchising, LLC Franchise Agreement is agreed to this day of,, by and between Epcon Communities Franchising, LLC ("Franchisor") and ("Franchisee") to amend and revise the Franchise Agreement between the parties, dated,, in the following respects: | |
|---|---|
| 1. | All capitalized terms herein which are not separately defined herein shall have the meanings ascribed to these terms in the Franchise Agreement. |
| 2. | In the event of a conflict between the terms of the Franchise Agreement and the terms of this Addendum, the terms of this Addendum shall control. |
| 3. | Except as specifically modified by this Addendum, all terms of the Franchise Agreement are in full force and effect. |
| 4. | Article 21 of the Franchise Agreement is hereby deleted in its entirety and the following substituted therefor: "Article 21 Franchisee Statements |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the addendum serves to modify the existing franchise agreement. The addendum specifies that its terms will take precedence in the event of any conflict with the original franchise agreement. Furthermore, any terms not specifically altered by the addendum remain in full effect, ensuring that the original agreement continues to govern the franchise relationship except where explicitly amended.
Notably, the FDD includes addenda for specific states like Illinois, Maryland, South Dakota, Virginia and Wisconsin, indicating that certain modifications are necessary to comply with state-specific franchise laws. For example, the Illinois addendum stipulates that Illinois law governs the Market Hold Agreement and voids any provision designating jurisdiction and venue outside of Illinois, except for arbitration. Similarly, the Maryland addendum modifies sections regarding transfer, termination, arbitration, and venue to ensure compliance with Maryland's franchise laws, including preserving the franchisee's right to file lawsuits under those laws within a three-year timeframe.
These addenda also address franchisee statements, with some states including provisions that protect franchisees from waiving claims under state franchise laws or disclaiming reliance on franchisor statements. This suggests that Epcon Communities aims to ensure franchisees' rights are protected in accordance with local regulations, providing a level of security and legal compliance within the franchise system. Prospective franchisees should carefully review any addenda applicable to their specific state to understand how the franchise agreement is modified and what specific rights and protections are afforded to them under local laws.