If Epcon Communities assigns the Sublicense Agreement, what condition applies to the assignment?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| i. Franchisee’s obligations on termination/non-renewal | Section 5 | Cease use and, if applicable, return to us, the Marks, Epcon Communities Works, Development System or systems or parts of the Development System; cancel recording of Sublicense Agreement in all governmental records. |
| j. Assignment of contract by | Not Applicable | No restrictions on our right to assign as long as our |
| franchisor | obligations are assumed upon assignment. |
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, there are specific conditions related to the assignment of the Sublicense Agreement by the franchisor. The document indicates that there are no restrictions on Epcon Communities' right to assign the Sublicense Agreement, provided that their obligations are assumed upon assignment. This means that if Epcon Communities decides to transfer the Sublicense Agreement to another party, the new party must take on all of Epcon Communities' responsibilities and duties outlined in the original agreement.
For a prospective franchisee, this condition offers a degree of security. It ensures that regardless of who holds the Sublicense Agreement, the obligations and responsibilities of Epcon Communities towards the franchisee remain intact. This could be particularly important if Epcon Communities were to be acquired by another company or undergo significant organizational changes. The franchisee can expect the same level of support, resources, and adherence to the terms of the agreement, regardless of the assignment.
However, it is crucial for the franchisee to carefully review the terms of the Sublicense Agreement to fully understand the obligations that Epcon Communities must assume. This includes understanding the scope of services, support, and any other commitments made by Epcon Communities. By doing so, the franchisee can ensure that these obligations are indeed transferred to the new party in the event of an assignment, maintaining the integrity of the franchise relationship.
In summary, while Epcon Communities has the right to assign the Sublicense Agreement, this right is conditional upon the assumption of their obligations by the assignee. This provides a safeguard for the franchisee, ensuring continuity and adherence to the agreed-upon terms, even if the agreement is transferred to a different entity.