What must an Epcon Communities franchisee do to have the mortgage terminated entirely?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article or Section in Mortgage | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Paragraph E (1) and (2) | We will terminate the mortgage entirely upon payment of all sums secured by the Mortgage and performance of all of obligations under the Mortgage. We will provide partial release of mortgage upon payment of applicable percent of sales price of each Unit. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, to have the mortgage terminated entirely, a franchisee must fulfill two requirements. First, the franchisee must make payment of all sums secured by the mortgage. Second, the franchisee needs to perform all obligations under the mortgage. Once both of these conditions are met, Epcon Communities will terminate the mortgage entirely.
In practical terms, this means that an Epcon Communities franchisee must fully satisfy all financial and contractual responsibilities associated with the mortgage to achieve complete termination. This includes paying off the principal balance, any accrued interest, and any other fees or charges outlined in the mortgage agreement. Additionally, the franchisee must adhere to all other non-monetary obligations specified in the mortgage, such as maintaining the property and complying with insurance requirements.
It is also important to note that Epcon Communities will provide a partial release of the mortgage upon payment of the applicable percentage of the sales price of each unit. This suggests that franchisees may have the option to reduce their mortgage obligations incrementally as they sell individual units within their development. Franchisees should carefully review the mortgage agreement and related documents to fully understand their obligations and the process for both partial and complete mortgage termination.