What happens to Article 21 of the Franchise Agreement in this Epcon Communities addendum?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Article 21 of the Franchise Agreement is hereby deleted in its entirety and the following substituted therefor:
"Article 21 Franchisee Statements
- 21.1 By its signature set forth below, Franchisee agrees with the following statements:
- (a) As an inducement to Franchisor entering into this Agreement with Franchisee, Franchisee has made no misrepresentations in obtaining this Agreement.
- (b) Franchisee is aware of the fact that some franchisees may operate under different forms of agreements, and consequently, that Franchisor's obligations and rights in respect to its various franchisees may differ materially in certain circumstances.
- 21.2 No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, Article 21 of the Franchise Agreement is entirely deleted and replaced with a new article titled "Article 21 Franchisee Statements." This change is implemented through an addendum to the franchise agreement.
The new Article 21 includes franchisee statements. It stipulates that the franchisee, by signing the agreement, confirms they have not made any misrepresentations to induce Epcon Communities into the agreement. It also acknowledges that franchisees may operate under different agreements, leading to variations in the franchisor's obligations and rights among franchisees.
Furthermore, the revised article clarifies that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including claims of fraud in the inducement. It also prevents disclaimers of reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement, offering additional protection to the franchisee.