What is the Franchisee's obligation regarding Franchisor's review of Project locations for Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee agrees to fully implement the Development System only within the Initial Market Area depicted on Exhibit "A". Franchisee agrees that Franchisor's review and expressed opinion about any Project location proposed by Franchisee is only Franchisor's opinion respecting how the site meets Franchisor's criteria for locations for Epcon Communities Projects and is based upon Franchisor's limited information about Franchisee's Initial Market Area. It does not constitute a representation, warranty, or an acknowledgment by Franchisor or any employee or agent of Franchisor that an Epcon Communities Project at the proposed location will be successful. The decision of Franchisee to proceed with the development of an Epcon Communities Project at the proposed location shall be at the sole discretion of Franchisee based upon its independent analysis, and Franchisee hereby agrees that it shall not have any claim of any nature against Franchisor and its employees and agents if the Epcon Communities Project does not perform in accordance with the expectations of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the franchisee is obligated to implement the Development System fully within the Initial Market Area as depicted in Exhibit "A". While Epcon Communities will review and provide an opinion on any project location proposed by the franchisee, this review is based on Epcon Communities' criteria and limited information about the franchisee's market area. This opinion is not a guarantee of success.
The franchisee's decision to proceed with development at the proposed location is solely at their discretion, based on their independent analysis. The franchisee agrees not to hold Epcon Communities liable if the project does not meet their expectations. This means that while Epcon Communities offers its expertise and opinion, the ultimate responsibility for site selection and project success rests with the franchisee.
Furthermore, Epcon Communities retains the right to access the franchisee's project premises to observe progress and ensure quality, and the franchisee is obligated to cooperate fully with these reviews. This includes providing a workspace for record audits and making knowledgeable representatives available to explain records and answer questions. However, these evaluations are not intended to control the franchisee's daily operations or ensure compliance with laws, but rather to protect Epcon Communities' interests in its Development System and Marks.