If a lender requests it, what agreement will Epcon Communities enter into?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
rned by and construed in accordance with the local laws of the State of Ohio, without application of its conflicts of laws provisions.
IN WITNESS WHEREOF, the parties hereto have executed or caused to be executed this Assignment Agreement to be effective on the day and year first written above.
| By: | Date: |
|---|---|
| [Name, Title] | |
| ASSIGNEE: NAME | |
| By: | Date: |
| [Name, Title] |
EPCON COMMUNITIES' CONSENT TO ASSIGNMENT
| For valuable consideration, receipt of which is hereby acknowledged, Epcon Communities Franchising, LLC | |
|---|---|
| ("Epcon Communities"), hereby consents to the assignment, as evidenced by the Lender Assignment Agreement, of | |
| the Epcon Communities Franchising, LLC Franchise Agreement and Market Area Agreement or Small Market Area | |
| Agreement, as applicable, attached hereto as Exhibit "A" by, as Assignor, to | |
| , as Assignee, and agrees that such Franchise Agreement and Market Area | |
| Agreement or Small Market Area Agreement, as applica |
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, Epcon Communities Franchising, LLC will consent to the assignment as evidenced by the Lender Assignment Agreement if a lender requests it. This agreement pertains to the assignment of the Franchise Agreement and Market Area Agreement or Small Market Area Agreement.
The Lender Assignment Agreement ensures that the original agreements remain in full effect, but are amended by the Lender Assignment Agreement itself. However, this is conditional upon both the assignor (the franchisee) and the assignee (the lender) fulfilling specific conditions.
Several conditions must be met for Epcon Communities to consent to the assignment. Epcon Communities' duties and obligations are not altered or increased. All payments specified in the Franchise Agreement must be paid on time. The franchisee (Assignor) must fully comply with the terms of the Franchise Agreement, Market Area Agreement, or Small Market Area Agreement. If the franchisee is not in full compliance due to nonpayment, the lender (Assignee) must pay any past due fees related to the project and agree to pay future fees. If non-compliance is due to a material default in the use of the Development System, the lender must correct the defaults and use the Development System without modification. The lender must also comply with the terms of the Franchise Agreement and Market Area Agreement, including providing necessary documents executed by individuals acting on their behalf.
If Epcon Communities has to hold initial training sessions for the lender or its agents, the lender agrees to pay a reasonable tuition fee for each attendee. This comprehensive set of conditions ensures that Epcon Communities' interests are protected while allowing for the assignment of the franchise agreement to the lender under specific circumstances.