Does Epcon Communities Franchising have any pending administrative, criminal, or civil actions alleging a felony, violation of franchise, antitrust or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, or unfair or deceptive practices?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 3 of the disclosure document is hereby modified by adding the following language to the end thereof:
"With the exception of what is stated above, the following applies to ECFL, its predecessors or a person identified in Item 2 of this disclosure document:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony; a violation of a franchise, antitrust or securities law; fraud, embezzlement, fraudulent conversion, misappropriation of property; unfair or deceptive practices or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to ECFL's business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the Epcon Communities Franchising franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, Item 3 of the disclosure document is modified to include information about pending or prior legal actions involving Epcon Communities Franchising, LLC (ECFL), its predecessors, and individuals identified in Item 2. With the stated exceptions, there are no pending administrative, criminal, or civil actions alleging a felony, violation of franchise, antitrust or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, or unfair or deceptive practices against these parties. Also, there are no pending actions, other than routine litigation incidental to ECFL's business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the Epcon Communities Franchising franchise system or its business operations.
Furthermore, no party has been convicted of a felony or pleaded nolo contendere to a felony charge, or within the ten-year period immediately preceding the application for registration, been convicted of or pleaded nolo contendere to a misdemeanor charge, or been the subject of a civil action alleging violation of franchise, antifraud or securities law, fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations. No party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
This indicates that Epcon Communities Franchising, LLC aims to represent that its key personnel and the company itself have a clean legal record regarding serious legal and financial misconduct. A prospective franchisee should independently verify these representations through their own due diligence, including legal counsel review, to assess the potential risks associated with the franchise.