Is the non-competition covenant for Epcon Communities franchisees during the franchise term subject to any state laws?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
e inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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IN WITNESS WHEREOF, the parties hereto have executed this Addendum to be effective as of the effective date of the Franchise Agreement.
| FRANCHISOR: Epcon Communities Franchising, LLC |
|---|
| By: |
| Joseph R. Karpowicz, Assistant General Counsel |
| FRANCHISEE: NAME |
| By: |
| [Name, Title] |
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC MARKET HOLD AGREEMENT FOR THE STATE OF ILLINOIS
This Addendum to Epcon Communities Franchising, LLC Market Hold Agreement (this "Addendum") is attached to and made a part of the Epcon Communities Franchising, LLC Market Hold Agreement (the "Market Hold Agreement"), by and between Epcon Communities Franchising, LLC ("Franchisor") and, a the principal place of business of which is located at ("Franchisee"), dated as of , for the purpose of modifying and amending the terms of such Market Hold Agreement. For such purpose, Franchisor and Franchisee agree as follows:
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- All capitalized terms herein which are not separately defined herein shall have the meanings ascribed to such terms in the Market Hold Agreement.
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- In the event of a conflict between the terms of the Market Hold Agreement and the terms of this Addendum, the terms of this Addendum shall control.
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- Except as specifically modified by this Addendum, all terms of the Market Hold Agreement are in full force and effect.
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- Notwithstanding anything in the Market Hold Agreement to the contrary:
Illinois law governs the Market Hold Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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IN WITNESS WHEREOF, the parties hereto have executed this Addendum to be effective as of the effective date of the Market Hold Agreement.
| FRANCHISOR: Epcon Communities Franchising, LLC | |
|---|---|
| By: | |
| Joseph R. Karpowicz, Assistant General Counsel | |
| FRANCHISEE: NAME | |
| By: | |
| [Name, Title] |
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF INDIANA
- Special Risk(s) to Consider About This Franchise:
The page entitled, "Special Risks to Consider About This Franchise of this disclosure document is hereby modified to comply with Indiana law by adding the following disclosure after the stated "Risk Factors":
"INDIANA LAW IS CONTROLLING FOR INDIANA FRANCHISEES."
2.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, the enforceability and interpretation of non-competition covenants can be subject to state laws, as evidenced by addenda to the franchise agreement for specific states like Illinois and Maryland.
For Illinois, the FDD includes an addendum to the Market Hold Agreement which states that Illinois law governs the Market Hold Agreement. It also notes that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. Furthermore, any condition that waives compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void.
For Maryland, the FDD includes an addendum to the franchise agreement which modifies sections regarding transfer, termination, and venue to ensure compliance with Maryland's Franchise Registration and Disclosure Laws. Specifically, it clarifies that the release of claims upon transfer does not apply to claims under Maryland's Franchise Laws, and it allows franchisees to file lawsuits in Maryland courts for causes of action arising under those laws, regardless of the agreement's arbitration and venue provisions. These addenda demonstrate that Epcon Communities acknowledges and adapts its franchise agreements to comply with specific state franchise laws, particularly concerning jurisdiction, venue, and franchisee rights upon termination or non-renewal.