What must the Franchisee do before the Epcon Communities Franchise Agreement can be terminated?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will terminate upon the full performance, payment and satisfaction of the Obligations ("Termination").
Upon such Termination, Secured Party will, promptly upon Debtor's request and at Debtor's expense, execute and deliver to Debtor a release of the lien granted to Secured Party hereunder on the Collateral or similar instrument of re-conveyance prepared by Secured party and deliver UCC termination statements with respect to the lien granted to Secured Party hereunder on the Collateral.
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 will terminate upon the full performance, payment, and satisfaction of the obligations. This means that an Epcon Communities franchisee must fulfill all their contractual duties, including making all required payments, before the agreement can be terminated.
This provision protects Epcon Communities by ensuring that franchisees meet their financial and operational commitments before ending the agreement. For a prospective franchisee, this highlights the importance of understanding all obligations outlined in the Franchise Agreement, as failure to meet these obligations could prevent termination and potentially lead to further liabilities.
Furthermore, upon termination, Epcon Communities will provide a release of lien on the collateral or a similar instrument of re-conveyance and deliver UCC termination statements, but only after the franchisee requests it and covers the expense. This indicates that the franchisee must take the initiative to clear any liens on their assets after fulfilling their obligations and terminating the agreement.