What litigation expenses must an Epcon Communities franchisee pay if Epcon Communities prevails in a legal dispute?
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 encompass a broad range of costs, including attorney's fees and accountant's fees. The franchisee is obligated to make this payment immediately upon receiving a bill for these expenses from Epcon Communities. This obligation is part of the broader financial responsibilities outlined in the franchise agreement.
This stipulation means that franchisees could face significant and unpredictable costs if a legal dispute arises and Epcon Communities wins the case. The amounts can vary widely depending on the complexity and duration of the litigation. It is important to note that these expenses are in addition to any legal costs the franchisee incurs in defending themselves.
Many franchise agreements contain clauses requiring the franchisee to cover the franchisor's legal costs if the franchisor prevails in a dispute. Prospective franchisees should carefully evaluate the potential financial impact of such a clause, considering the possibility of a protracted and expensive legal battle. Understanding this obligation is crucial for assessing the overall financial risk associated with investing in an Epcon Communities franchise.