Does the Epcon Communities franchise agreement include any representations, warranties, or guarantees regarding the potential volume, profits, or success of the business venture?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee agrees to fully implement the Development System only within the Initial Market Area depicted on Exhibit "A". Franchisee agrees that Franchisor's review and expressed opinion about any Project location proposed by Franchisee is only Franchisor's opinion respecting how the site meets Franchisor's criteria for locations for Epcon Communities Projects and is based upon Franchisor's limited information about Franchisee's Initial Market Area. It does not constitute a representation, warranty, or an acknowledgment by Franchisor or any employee or agent of Franchisor that an Epcon Communities Project at the proposed location will be successful. The decision of Franchisee to proceed with the development of an Epcon Communities Project at the proposed location shall be at the sole discretion of Franchisee based upon its independent analysis, and Franchisee hereby agrees that it shall not have any claim of any nature against Franchisor and its employees and agents if the Epcon Communities Project does not perform in accordance with the expectations of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the franchisor does not provide any guarantees regarding the potential success of a project. Specifically, the FDD states that any review or opinion expressed by Epcon Communities about a project location is simply their opinion based on their criteria and limited information about the franchisee's market area.
Epcon Communities explicitly states that this opinion does not constitute a representation, warranty, or acknowledgment that a project at the proposed location will be successful. The decision to proceed with development rests solely with the franchisee, based on their independent analysis.
This means a prospective Epcon Communities franchisee bears the full responsibility and risk for assessing the viability of a project location. The franchisee also agrees not to hold Epcon Communities liable if the project does not meet their expectations. This underscores the importance of conducting thorough due diligence and market research before investing in an Epcon Communities franchise.