What happens in the event of death or disability of an Epcon Communities franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Columbus, Ohio or in Common Pleas Court of Franklin County, Ohio. | | w. Choice of law | Section 10.G | Subject to applicable state law, Ohio law applies. |
| Provision | Article in Non- Disclosure and On-Line Information Access Agreement | Summary | |---|---|---| | a. Length of the franchise term | Section 14 | Effective date until termination. | | b. Renewal or extension of the | Not Applicable | Not Applicable. | | term | | | | c. Requirements for franchisee to renew or extend | Not Applicable | Not Applicable. Although the term “renewal” does not apply to the Epcon franchise, the term renewal generally means that the franchise relationship is extended for an additional term of years. | | d. Termination by franchisee | Not Applicable | Not Applicable. | | e. Termination by franchisor without cause | Section 14 | We can terminate at any time, with or without notice for any reason or no reason, regardless of the status of your Franchise Agreement. | | f. Termination by franchisor | Section 14 | We can terminate upon your failure to maintain | | with cause | | authorized franchisee status. | | g. “Cause” defined -- curable | Not Applicable | Not Applicable. | | h. “Cause” defined -- non- | Not Applicable | Not Applicable. | | curable | | | | i. Franchisee’s obligations on | Section 14 | Cease use of Epcon Communities Intranet. | | termination/nonrenewal | | | | j. Assignment of contract by | Not Applicable | Not Applicable. | | franchisor | | | | k. “Transfer” by franchisee - | Not Applicable | Not Applicable. | | defined | | | | l. Franchisor approval of a | Not Applicable | Not Applicable. | | transfer by franchisee | | | | m. Conditions for franchisor’s | Not Applicable | Not Applicable. | | approval of a transfer | | | | n. Franchisor’s right of first | Not Applicable | Not Applicable. | | refusal to acquire | | | | franchisee’s business | | | | o. Franchisor’s option to | Not Applicable | Not Applicable. | | purchase franchisee’s | | | | business | | | | p. Death or disability of | Not Applicable | Not Applicable. | | franchisee | | | | q. Non-competition covenants during the term of the franchise | Section 10 | You may not create a web site using Epcon, epcon.com, epconhomesandcommunities.com, epconcommunities.com, epconfranchising.com, EpconOpportunity.com and/or |
| Provision | Article or Section in Copyright & Assignment Agreement | Summary |
|---|---|---|
| g. “Cause” defined -- curable | Not Applicable | Not Applicable. |
| h. “Cause” defined -- non- | Not Applicable | Not Applicable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the document indicates that the franchise agreements do not contain specific clauses addressing the death or disability of the franchisee. This is noted as 'Not Applicable' in the summary of provisions related to the 'Death or disability of franchisee' within Item 17, which outlines renewal, termination, transfer, and dispute resolution terms across various agreements such as the Non-Disclosure and On-Line Information Access Agreement, Sublicense Agreement, Market Hold Agreement and Copyright & Assignment Agreement.
For a prospective Epcon Communities franchisee, this absence of specific terms regarding death or disability could create uncertainty. It is unclear what would happen to the franchise if the franchisee were to die or become disabled. Without explicit provisions, the franchise may be subject to complex legal proceedings to determine the fate of the business, potentially leading to disputes among heirs or with Epcon Communities itself.
In the absence of clear guidance in the FDD, it is crucial for potential franchisees to seek clarification from Epcon Communities regarding their policies and procedures in the event of death or disability. This discussion should cover potential options such as transferring the franchise to a qualified heir or designee, the conditions under which such a transfer could occur, and any financial implications. Franchisees should also consider their own estate planning and insurance arrangements to address these possibilities.
Typically, franchise agreements contain clauses that allow for the transfer of the franchise to a spouse, heir, or another qualified party, subject to the franchisor's approval. The absence of such a clause in the Epcon Communities agreements is atypical and warrants careful consideration and further investigation by potential franchisees to protect their investment and ensure business continuity.