Does the execution of the Termination Agreement automatically terminate the Epcon Communities Franchise Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Termination and Release Agreement (this "Termination Agreement") is made as of , 20, by and among Epcon Communities Franchising, LLC, an Ohio limited liability company with its principal place of business at 500 Stonehenge Parkway, Dublin, OH 43017 ("Epcon") and a(n) with its principal place of business at ("Franchisee.") |
|---|
| Background |
| A. |
| Epcon and Franchisee entered into that certain Epcon Communities Franchising, LLC Franchise |
| Agreement (the "Franchise Agreement"), dated as of, pursuant to which Franchisee was granted |
| the right to use the Epcon Development System. |
| B. |
| Epcon and Franchisee each desire to terminate the Franchise Agreement effective upon the |
| performance by Franchisee of certain preconditions as set forth herein. |
| C. |
| Epcon desires to release Franchisee and Franchisee desires to release Epcon, with respect to any |
| and all claims that each may have against the other party as of the Effective Date (as hereinafter defined) of this |
| Termination Agreement. |
| Agreement |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the execution of the Termination Agreement does not automatically terminate the Franchise Agreement. The FDD states that Epcon Communities and the franchisee both desire to terminate the Franchise Agreement, but that the termination is only effective upon the franchisee fulfilling certain preconditions outlined in the Termination Agreement.
This means that simply signing the Termination Agreement is not enough to end the franchise relationship. The franchisee must still meet specific obligations or conditions detailed within the agreement itself. These preconditions could involve financial payments, transfer of assets, or other requirements that must be satisfied before the termination becomes effective.
For a prospective Epcon Communities franchisee, this highlights the importance of carefully reviewing the Termination Agreement. Franchisees need to understand exactly what steps they must take to ensure the Franchise Agreement is properly terminated. Failure to meet these preconditions could result in continued obligations under the Franchise Agreement, even after signing the Termination Agreement. Franchisees should seek legal counsel to fully understand their obligations and ensure compliance with the terms of the Termination Agreement.