Does the Epcon Communities franchise agreement allow franchisees to disclaim reliance on statements made by the franchisor or its representatives?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the franchise agreement does not allow franchisees to disclaim reliance on statements made by the franchisor or its representatives. Several addenda to the franchise agreement for specific states (Virginia, Indiana, New York, North Dakota, Wisconsin, and Rhode Island) explicitly state that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement.
This means that Epcon Communities franchisees retain their legal rights to pursue claims based on misrepresentations or fraudulent statements made by the franchisor during the franchise sales process, despite any agreements to the contrary. This protection is particularly important because it prevents Epcon Communities from using standardized documents to shield themselves from liability for misleading information provided to potential franchisees. The inclusion of these addenda reflects a commitment to compliance with state franchise laws and aims to protect franchisees from potentially overreaching contractual terms.
It is important to note that these specific provisions are included as addenda for franchisees in Virginia, Indiana, New York, North Dakota, Wisconsin, and Rhode Island. Franchisees in other states will need to carefully review their franchise agreements and any applicable state laws to determine whether similar protections apply. Prospective franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and relevant state laws.