Who does the Epcon Communities franchise agreement benefit, besides the immediate parties?
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 franchise agreement is specifically intended to benefit Epcon Communities Franchising, LLC as a third party. This is particularly relevant in the context of an Assignment Agreement between an Assignor (original franchisee) and an Assignee (new franchisee).
The Assignment Agreement explicitly states that Epcon Communities is a third-party beneficiary. This means that Epcon Communities is entitled to directly benefit from the agreement's provisions and can enforce them. Specifically, if the Assignee decides to use Epcon Communities' Development System to complete 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 third-party beneficiary status grants Epcon Communities the right 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 legal remedies available at law or in equity for any breach by the Assignee. This ensures that Epcon Communities retains control over its Development System and that its interests are protected even when a franchise is transferred.