Why is Epcon Communities Franchising, Inc. not considered a predecessor of Epcon Communities Franchising, LLC?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
On December 31, 2019, Epcon Communities Franchising, Inc. converted from an Ohio corporation to an Ohio limited liability company with the name Epcon Communities Franchising, LLC. Because of the nature of the conversion and the fact that there was no "acquisition" of assets, we do not regard Epcon Communities Franchising, Inc. (referred to in this disclosure document as "ECFI") as a predecessor of Epcon Communities Franchising, LLC. Epcon Communities Franchising, Inc.'s principal business address was 500 Stonehenge Parkway, Dublin, Ohio 43017.
From March 14, 2005 until December 31, 2019, under the name Epcon Communities Franchising, Inc., we offered and sold Epcon Communities franchises. ECFI changed its name on March 14, 2005 from Epmark, Inc. From August 1996 until February 2005, under the name Epmark, Inc., we offered and sold Epmark franchises.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Epcon Communities Franchising, Inc. (ECFI) is not considered a predecessor to Epcon Communities Franchising, LLC (ECFL) due to the nature of the company's conversion. On December 31, 2019, Epcon Communities Franchising, Inc. converted from an Ohio corporation to an Ohio limited liability company, taking on the name Epcon Communities Franchising, LLC.
The FDD specifies that because this was a simple conversion and not an acquisition of assets, ECFL does not consider ECFI a predecessor. This distinction is important in franchising because a predecessor's business history, including financial performance and litigation, must be disclosed in the FDD. Since Epcon Communities Franchising, Inc. simply changed its corporate structure to Epcon Communities Franchising, LLC, the franchisor maintains that there was no transfer of assets that would legally require the former entity to be considered a predecessor.
From a franchisee's perspective, this means that the business history presented in the FDD primarily reflects the activities of Epcon Communities Franchising, LLC since its formation on December 31, 2019, rather than including the full history of Epcon Communities Franchising, Inc. from March 14, 2005. However, the FDD does disclose that from March 14, 2005 until December 31, 2019, under the name Epcon Communities Franchising, Inc., Epcon Communities offered and sold Epcon Communities franchises. Prior to that, from August 1996 until February 2005, under the name Epmark, Inc., they offered and sold Epmark franchises. This information provides some historical context for the franchise system.