What is the Epcon Communities franchisee required to do to cooperate with an audit of their records by Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon ten (10) days' written notice, Franchisor's representatives may enter upon the premises of any office of Franchisee wherever located (including after termination of this Agreement) and review Franchisee's records relevant to the Projects.
Franchisee shall cooperate with the audit process by providing a work area where the records are maintained, permit the copying of such records and shall make a knowledgeable representative of Franchisee available to explain the books and records and answer questions from Franchisor's representative(s).
Any evaluation or inspection is not intended to exercise, and does not constitute, control over Franchisee's day-to-day operation of its business or the Project.
Any evaluation or inspection is also not intended to be, and does not constitute, an analysis of Franchisee's compliance with applicable federal, state, and local laws, regulations, ordinances, and codes.
Any evaluation or inspection is to protect Franchisor's interests in the Development System and the Marks and not for the purpose of establishing any control or duty to take control over those matters that are reserved to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, franchisees must cooperate with the audit process if Epcon Communities chooses to review their records. Specifically, Epcon Communities' representatives can enter the franchisee's office premises, with ten days' written notice, to review records relevant to the projects. This includes after the termination of the agreement.
To facilitate the audit, the franchisee must provide a suitable work area where the records are maintained. They must also allow the copying of these records. Furthermore, the franchisee is obligated to make a knowledgeable representative available to explain the books and records and answer any questions from Epcon Communities' representatives.
It is important to note that these evaluations or inspections are not intended to give Epcon Communities control over the franchisee's day-to-day operations or to analyze compliance with laws and regulations. The purpose is to protect Epcon Communities' interests in the Development System and Marks, while the franchisee retains control over their reserved matters.
This requirement ensures that Epcon Communities can maintain oversight and verify compliance with the franchise agreement, while also placing specific obligations on the franchisee to support the audit process through providing access, workspace, record copies, and knowledgeable staff.