Does the Epcon Communities Franchise Agreement allow franchisees to make misrepresentations to obtain the agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
"Article 21 Franchisee Statements
- 21.1 By its signature set forth below, Franchisee agrees with the following statements:
- (a) As an inducement to Franchisor entering into this Agreement with Franchisee, Franchisee has made no misrepresentations in obtaining this Agreement.
- (b) Franchisee is aware of the fact that some franchisees may operate under different forms of agreements, and consequently, that Franchisor's obligations and rights in respect to its various franchisees may differ materially in certain circumstances.
- 21.2 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 standard franchise agreement is modified by an addendum for franchisees in Virginia. This addendum includes a clause stating that the franchisee has made no misrepresentations to obtain the agreement, acting as an inducement for Epcon Communities to enter into the agreement.
Specifically, the addendum states that by signing the agreement, the franchisee affirms they have not made any misrepresentations to induce Epcon Communities to enter into the agreement. This suggests that Epcon Communities places importance on the honesty and accuracy of information provided by the franchisee during the application and agreement process.
Furthermore, the addendum clarifies that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Epcon Communities. This provision protects the franchisee from unknowingly waiving their rights and ensures they can pursue legal remedies if they believe they were misled. This clause supersedes any other conflicting terms in any document executed in connection with the franchise.
In summary, while the standard agreement may not explicitly address misrepresentations, the Virginia addendum includes a statement where the franchisee confirms they have not made any misrepresentations. Additionally, the clause protecting franchisees' rights regarding fraud in the inducement suggests that Epcon Communities does not condone or allow misrepresentations in obtaining the franchise agreement.