What is the exception to the rule of when an Epcon Communities project ceases operation?

According to the 2025 Epcon Communities FDD, an Epcon Communities project typically ceases operation when the last unit in the project is sold, even if some marketing, sales, or construction tasks remain incomplete. This means that franchisees are generally considered to have completed their obligations once all units are sold, regardless of any lingering tasks. This is a fairly standard practice in real estate development franchises, as it provides a clear benchmark for project completion.

However, there is an exception to this rule. For Franchise Agreements signed before April 2019, the project's operational status may continue even after the sale of the last unit. The FDD does not elaborate on the specific conditions or requirements for these older agreements. This exception suggests that older agreements may have different terms regarding project completion and ongoing responsibilities.

For prospective franchisees, this means it is crucial to understand the terms of the Franchise Agreement, particularly regarding project completion and cessation of operations. If considering acquiring an existing franchise with an agreement predating April 2019, it is essential to clarify the specific obligations and responsibilities that extend beyond the final unit sale. This could impact the franchisee's workload, potential liabilities, and overall profitability. It would be prudent to seek legal counsel to review the Franchise Agreement and understand the implications of this exception.