What fees are associated with transferring an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
may reasonably require, the transferee franchisee shall complete each of the initial training sessions then in effect for new franchisees.
- 12.2 If Franchisee is a corporation, partnership, limited liability company, or similar entity, the terms of Section 12.1 shall apply to any sale, resale, pledge, assignment, transfer or encumbrance of any voting stock of, or other ownership interest in, Franchisee.
- 12.3 In connection with any transfer for which Franchisor grants its consent as described in Section 12.1 hereof, Franchisee shall pay to Franchisor a transfer fee to cover Franchisor's actual costs, and due diligence, administrative, legal and other expenses respecting the transfer.
- 12.4 In the event that Franchisee proposes to transfer all of its interest in the Epcon Communities franchise granted pursuant hereto to a corporation, partnership, or limited liability company solely for the convenience of ownership, the provisions of Sections 12.1, 12.2, and 12.3 hereof shall not apply; provided that Franchisor's consent to such transfer may, in its sole discretion, be conditioned upon the following requirements:
- (a) The transferee entity shall be newly organized and its Articles of Incorporation and Bylaws (or comparable governing documents for entities other than corporations) shall provide that its activities are confined exclusively to operate the business franchised hereunder and activities related thereto;
- (b) Franchisee shall identify to Franchisor all of the stockholders, directors, officers, partners and/or members of the transferee entity;
- (c) Franchisee shall enter into an agreement, in a form satisfactory to Franchisor, unconditionally guaranteeing the full payment and performance of the transferee entity's obligations to Franchisor;
- (d) Each stock (or other ownership interest) certificate of the transferee entity shall have conspicuously endorsed upon its face the following legend:
"The transfer of this [type of certificate] certificate is subject to the terms and conditions of a certain Franchise Agreement executed with Epcon Communities Franchising, LLC.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise, they must pay a transfer fee to Epcon Communities. This fee is intended to cover Epcon Communities' actual costs, due diligence processes, administrative tasks, legal expenses, and other expenses related to the transfer.
Additionally, the transferee (the party receiving the franchise) must execute the then-current standard Epcon Communities Franchise Agreement and any other related agreements that Epcon Communities requires. The term of this new agreement will align with Section 3.1 of the existing agreement. The transferee is also responsible for completing the initial training sessions that are in effect for new franchisees at their own expense and under any other terms and conditions that Epcon Communities may reasonably require.
However, these transfer provisions do not apply if the transfer of the Epcon Communities franchise is solely for the convenience of ownership, such as transferring the interest to a corporation, partnership, or limited liability company. In such cases, Epcon Communities' consent may still be required and could be conditional. The conditions may include the transferee entity being newly organized with its activities limited to operating the franchised business, identifying all stakeholders of the transferee entity to Epcon Communities, and the original franchisee entering into an agreement guaranteeing the transferee entity's obligations to Epcon Communities. Furthermore, any stock certificates of the transferee entity must bear a legend indicating that the transfer is subject to the terms of the Franchise Agreement with Epcon Communities Franchising, LLC.