When are litigation expenses due from an Epcon Communities franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Litigation Expenses to Prevailing Party in Dispute | Amounts vary. | Immediately upon billing. | If we are the prevailing party in a legal dispute with you, you must pay all our litigation expenses, including attorney’s and accountant’s fees. |
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if Epcon Communities prevails in a legal dispute with a franchisee, the franchisee is responsible for covering all of Epcon Communities' litigation expenses. These expenses may include attorney's fees and accountant's fees. The franchisee is obligated to pay these litigation expenses immediately upon billing.
This means that as an Epcon Communities franchisee, you could face significant and unpredictable costs if you are involved in a legal dispute with the franchisor and they win the case. These costs are in addition to your own legal fees and any other damages or settlements you may be required to pay.
It is important for a prospective Epcon Communities franchisee to carefully consider the potential for legal disputes and the associated costs. Understanding the circumstances under which you might be liable for Epcon Communities' legal expenses is crucial for assessing the financial risks of investing in this franchise. You should factor in potential legal costs when evaluating the overall profitability and sustainability of the franchise.