Does the Epcon Communities Franchise Disclosure Document include a Security Agreement as an exhibit?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Exhibit E | Personal Covenants and Agreement of Principal, Officer, Director, Owner, Investor or Partner of Franchisee |
|---|---|
| Exhibit F | Personal Covenants and Agreement of One Provided Detailed Knowledge of the Development System |
| Exhibit G | Market Hold Agreement |
| Exhibit H | Sublicense Agreement |
| Exhibit I | Lender Assignment Agreement |
| Exhibit J | Mortgage |
| Exhibit K | Non-Disclosure and On-Line Information Access Agreements |
| Exhibit L | Copyright Assignment & Agreement |
| Exhibit M | Security Agreement |
| Exhibit N | Termination and Release Agreement |
| Exhibit O | List of State Administrators |
| Exhibit P | List of Agents for Service of Process |
| Exhibit Q | List of Copyrights |
| Exhibit R | Termination and Release agreement |
| Exhibit S | Technology Royalty Addendum to Franchise Agreement |
| Exhibit T | State Addenda to the Franchise Disclosure Document and Agreements |
| Exhibit U | Receipt Pages |
Source: Item 22 — CONTRACTS (FDD pages 85–86)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a Security Agreement is included as Exhibit M. Item 22 of the FDD lists all contracts and agreements attached to the document, providing potential franchisees with a comprehensive view of the legal documents they will need to understand.
The inclusion of a Security Agreement as an exhibit indicates that Epcon Communities may require franchisees to provide some form of security to ensure compliance with the franchise agreement. This could involve pledging assets as collateral. Franchisees should carefully review the Security Agreement to understand what assets may be at risk and under what conditions Epcon Communities could claim those assets.
Prospective Epcon Communities franchisees should seek legal counsel to fully understand the implications of the Security Agreement. Understanding the conditions under which the franchisor can claim assets is crucial for assessing the financial risks associated with the franchise. This is a standard practice in franchising, but the specific terms can vary significantly, so due diligence is essential.