Who does the Epcon Communities Franchise Agreement benefit, according to the agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
**Third-Party Beneficiary.
Assignor and Assignee acknowledge and agree that each contemplates and intends that: (a) this Assignment Agreement and its specific provisions are intended directly to benefit Epcon Communities, and Epcon Communities is intended to be, and shall be, a third-party beneficiary of this Assignment Agreement; (b) Assignee, if it decides to use the Development System to complete any unfinished Project(s) pursuant to Section 2 above, shall assume a direct obligation to Epcon Communities, as such third-party beneficiary, to perform certain of Assignor's obligations under the Franchise Agreement and the Market Area Agreement; and (c) Epcon Communities, as such thirdparty beneficiary, shall be conferred with the rights, in its sole discretion, to itself take any action or pursue any remedy that it deems necessary in order to enforce the provisions hereof or of the Franchise Agreement and to which it would be entitled as a party enforcing this Assignment Agreement.
Epcon Communities shall be entitled to any remedies available at law, in equity, or provided in the Franchise Agreement for any breach by Assignee of any provision hereof or of any Market Area Agreement.**
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the Assignment Agreement is specifically intended to benefit Epcon Communities. The agreement explicitly states that Epcon Communities is a third-party beneficiary. This means that while the agreement is made between the assignor (the original franchisee) and the assignee (the party taking over the franchise), Epcon Communities is a direct beneficiary of the terms and conditions outlined in the agreement.
Specifically, if the assignee decides to use the Development System to complete any unfinished projects, they assume a direct obligation to Epcon Communities to perform certain of the assignor's obligations under the Franchise Agreement and the Market Area Agreement. This ensures that Epcon Communities' standards and systems are maintained even when a franchise changes hands.
Furthermore, as a third-party beneficiary, Epcon Communities is granted the right, at its discretion, to take any action or pursue any remedy it deems necessary to enforce the provisions of the Assignment Agreement or the Franchise Agreement. This includes any remedies available at law, in equity, or as provided in the Franchise Agreement for any breach by the assignee. This clause reinforces Epcon Communities' ability to protect its interests and ensure compliance with its franchise standards and agreements.