Does the Epcon Communities Franchisee agree that they have made no misrepresentations in obtaining the agreement as an inducement to the Franchisor?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, franchisees, upon signing the agreement, confirm they have not made any misrepresentations to induce Epcon Communities into the agreement. This is outlined in Article 21 of the franchise agreement, specifically in section 21.1(a). This acknowledgement serves as an inducement for Epcon Communities to enter into the franchise agreement. However, the addendum clarifies that no statement made by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision takes precedence over any conflicting terms in other documents related to the franchise.
This clause is a standard legal protection for Epcon Communities, ensuring that the agreement is based on accurate information provided by the franchisee. It prevents franchisees from later claiming they were misled during the application process if the information they provided was false.
However, the inclusion of addenda for states like Virginia, North Dakota, South Dakota, and Wisconsin emphasizes that franchisees do not waive rights to claims, including fraud in the inducement, under applicable state franchise laws. This ensures that franchisees retain legal recourse even with the initial agreement, providing a balance of protection for both parties.
Prospective franchisees should carefully review all documents and addenda to understand their rights and obligations fully. It is advisable to consult with a legal professional to ensure a complete understanding of the agreement and its implications, especially concerning state-specific protections.