Does the Epcon Communities franchise agreement address the death or disability of the franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
County, Ohio. | | w. Choice of law | Paragraphs 17 | Subject to applicable state law, Ohio law applies and you | | | and 18 | waive your right to a jury trial. |#### Sublicense Agreement
| Provision | Article or Section in Market Hold Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 2 | Reserved Market Area will be held for 6 months. |
| b. Renewal or extension of the | Not Applicable | Not Applicable. |
| term | ||
| c. Requirements for franchisee to renew or extend | Not Applicable | Although the term “renewal” does not apply to the Epcon franchise, the term renewal generally means that the franchise relationship is extended for an additional term of years. |
| d. Termination by franchisee | Not Applicable | Not Applicable. |
| e. Termination by franchisor | Not Applicable | Not Applicable. |
| without cause | ||
| f. Termination by franchisor | Not Applicable | Not Applicable. |
| with cause | ||
| g. “Cause” defined -- curable | Not Applicable | Not Applicable. |
| h. “Cause” defined -- non- | Not Applicable | Not Applicable. |
| curable | ||
| i. Franchisee’s obligations on | Not Applicable | Not Applicable. |
| termination/nonrenewal | ||
| j. Assignment of contract by | Not Applicable | Not Applicable. |
| franchisor | ||
| k. “Transfer” by franchisee -- | Section 5 | Market Hold Agreement is not assignable to any other |
| defined | party without our consent. | |
| l. Franchisor approval of a | Not Applicable | Not Applicable. |
| transfer by franchisee | ||
| m. Conditions for franchisor’s | Not Applicable | Not Applicable. |
| approval of a transfer | ||
| n. Franchisor’s right of first | Not Applicable | Not Applicable. |
| refusal to acquire franchisee’s | ||
| business | ||
| o. Franchisor’s option to | Not Applicable | Not Applicable. |
| purchase franchisee’s | ||
| business | ||
| p. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the franchise agreements, including the Sublicense Agreement, Non-Disclosure and On-Line Information Access Agreement, Market Hold Agreement, and Copyright & Assignment Agreement, do not contain specific provisions addressing the death or disability of the franchisee. This is explicitly stated as "Not Applicable" in the summary of provisions related to these agreements.
For a prospective franchisee, this means that the FDD does not outline any specific procedures or conditions that would apply in the event of the franchisee's death or disability. Common franchise agreements often include clauses that address such scenarios, detailing how the franchise may be transferred, terminated, or otherwise managed. The absence of such provisions in the Epcon Communities agreements suggests that these matters are either handled on a case-by-case basis or are subject to other legal considerations outside the scope of the franchise agreement itself.
Given this lack of explicit coverage, it is crucial for potential Epcon Communities franchisees to seek clarification from the franchisor regarding how the franchise would be handled in the event of death or disability. This inquiry should cover aspects such as the possibility of transferring the franchise to a family member or business partner, the conditions under which the franchisor might terminate the agreement, and any financial implications for the franchisee's estate or beneficiaries. Understanding these aspects is essential for adequate business and estate planning.
It would be prudent for prospective franchisees to consult with legal and financial advisors to determine the best course of action to protect their interests and ensure business continuity in unforeseen circumstances. This might involve creating a succession plan, obtaining appropriate insurance coverage, or negotiating specific terms with Epcon Communities to address these concerns.