What is the exception to the full force and effect of the Franchise Agreement in the Epcon Communities agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to the franchisee under the franchise, that provision may not be enforceable."
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC FRANCHISE AGREEMENT FOR THE STATE OF VIRGINIA
This Addendum to Epcon Communities Franchising, LLC Franchise Agreement is agreed to this day of, 20, 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:
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- All capitalized terms herein which are not separately defined herein shall have the meanings ascribed to these terms in the Franchise Agreement.
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- 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.
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- Except as specifically modified by this Addendum, all terms of the Franchise Agreement are in full force and effect.
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- Article 21 of the Franchise Agreement is hereby deleted in its entirety and the following substituted therefor:
"Article 21 Franchisee Statements
- 21.1 By its signature set forth below, Franchisee agrees with the following statements:
- (a) As an inducement to Franchisor entering into this Agreement with Franchisee, Franchisee has made no misrepresentations in obtaining this Agreement.
- (b) Franchisee is aware of the fact that some franchisees may operate under different forms of agreements, and consequently, that Franchisor's obligations and rights in respect to its various franchisees may differ materially in certain circumstances.
- 21.2 No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."
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- This Addendum, together with the Franchise Agreement to which it is attached, constitutes the entire agreement of the parties with respect to the subject matter hereof and may not be further modified or amended except in a written agreement signed by both parties.
[Remainder of page intentionally blank. Signature page follows.]
IN WITNESS WHEREOF, the parties hereto have signed this Addendum to be effective as of the date first above written.
| FRANCHISOR: Epcon Communities Franchising, LLC | |
|---|---|
| By: | |
| Joseph R. Karpowicz, Assistant General Counsel | |
| FRANCHISEE: NAME | |
| By: | |
| [Name, Title] |
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF WISCONSIN
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC FRANCHISE AGREEMENT FOR THE STATE OF WISCONSIN
| This Addendum to Epcon Communities Franchising, LLC Franchise Agreement is agreed to this |
|---|
| day of, 20, 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: |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, there are addenda to the franchise agreement for franchisees in Virginia and Maryland. These addenda modify the original agreement, and in the event of a conflict between the original agreement and the addendum, the terms of the addendum will take precedence.
For franchisees in Virginia, Article 21 of the Franchise Agreement is deleted in its entirety and replaced with a new article regarding franchisee statements. This new article clarifies that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor.
For franchisees in Maryland, several sections of the Franchise Agreement are modified. Section 12.1(c) regarding transfer is modified to state that the release shall not apply to any claims under Maryland's Franchise Registration and Disclosure Laws. Section 13.1 regarding termination is modified to note that the provision for termination upon bankruptcy may not be enforceable under federal bankruptcy law. Additionally, Sections 13.7 (Arbitration and Venue) and 20.3 (Venue) are modified to allow the franchisee to file a lawsuit in Maryland courts for causes of action arising under Maryland Franchise Laws, with a three-year statute of limitations. Article 21 is also deleted and replaced in its entirety.