Does the Franchisor assume liability for any act or omission of the Epcon Communities Franchisee in its operations?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 15 Independent Contractor
- 15.1 It is understood and agreed that Franchisee is an independent contractor and nothing in this Agreement shall create a partnership, employment or agency relationship between Franchisor and Franchisee or authorize Franchisee to make any contract, agreement, warranty or representation on Franchisor's behalf, or to incur any debt or other obligation in Franchisor's name, and that Franchisor shall in no event assume liability for, or be deemed liable hereunder as a result of, any such action, or by reason of any act or omission of Franchisee in any of its operations hereunder or any claim or judgment arising therefrom against Franchisor.
Franchisee further agrees that Franchisor owes no fiduciary duty whatsoever to Franchisee.
Any required standards in the Development System exist to protect Franchisor's interests in the Development System and the Epcon Communities Works and/or the Marks and not for the purpose of establishing any control or duty to take control over Franchisee's decisions or day-to-day operations of Franchisee's business or those matters that are reserved to Franchisee.
- 15.2 Neither Franchisor nor its affiliates are the employer or joint employer of Franchisee's employees.
Franchisee is solely responsible for managing and operating the business franchised under this Agreement and supervising the Franchisee's employees.
Franchisee agrees to identify itself conspicuously in all dealings with customers, suppliers, public officials, personnel, and others as the business owner, operator, and manager under a franchise Franchisor has granted to Franchisee.
Any training Franchisor provides to any of Franchisee's employees will be limited to training or guidance regarding the Development System.
Franchisee is, and will remain, the sole employer of Franchisee's employees at all times, including during all training programs, and Franchisee is solely responsible for all employment decisions and actions related to Franchisee's employees, and Franchisee has the sole responsibility for the hiring, wages and other compensation (including benefits), training, supervision and termination of Franchisee's employees and all other employment and employee related matters.
Franchisee is solely responsible for ensuring that its workers receive adequate training.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, Epcon Communities does not assume liability for any act or omission of the franchisee in its operations. As stated in Article 15.1, the franchisee is an independent contractor, and the agreement does not establish a partnership, employment, or agency relationship between Epcon Communities and the franchisee. The franchisee is not authorized to make any agreements or incur any debt on Epcon Communities' behalf. Therefore, Epcon Communities will not be held liable for any actions, omissions, claims, or judgments arising from the franchisee's operations.
This section of the FDD also clarifies that Epcon Communities owes no fiduciary duty to the franchisee. Any standards in the Development System are in place to protect Epcon Communities' interests in the Development System, the Epcon Communities Works, and the Marks, and do not establish control over the franchisee's decisions or day-to-day operations.
Furthermore, Section 15.2 states that neither Epcon Communities nor its affiliates are the employer or joint employer of the franchisee's employees. The franchisee is solely responsible for managing and operating the franchised business, supervising employees, and ensuring adequate training for workers. The franchisee must identify itself as the business owner and operator in all dealings with customers, suppliers, and others.