Does Epcon Communities have an option to purchase a franchisee's business?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
County, Ohio. | | w. Choice of law | Paragraphs 17 | Subject to applicable state law, Ohio law applies and you | | | and 18 | waive your right to a jury trial. |#### Sublicense Agreement
| Provision | Article or Section in Market Hold Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 2 | Reserved Market Area will be held for 6 months. |
| b. Renewal or extension of the | Not Applicable | Not Applicable. |
| term | ||
| c. Requirements for franchisee to renew or extend | Not Applicable | Although the term “renewal” does not apply to the Epcon franchise, the term renewal generally means that the franchise relationship is extended for an additional term of years. |
| d. Termination by franchisee | Not Applicable | Not Applicable. |
| e. Termination by franchisor | Not Applicable | Not Applicable. |
| without cause | ||
| f. Termination by franchisor | Not Applicable | Not Applicable. |
| with cause | ||
| g. “Cause” defined -- curable | Not Applicable | Not Applicable. |
| h. “Cause” defined -- non- | Not Applicable | Not Applicable. |
| curable | ||
| i. Franchisee’s obligations on | Not Applicable | Not Applicable. |
| termination/nonrenewal | ||
| j. Assignment of contract by | Not Applicable | Not Applicable. |
| franchisor | ||
| k. “Transfer” by franchisee -- | Section 5 | Market Hold Agreement is not assignable to any other |
| defined | party without our consent. | |
| l. |
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, the company does not have the option to purchase a franchisee's business. This is consistent across multiple agreements, including the Market Hold Agreement, Sublicense Agreement, Non-Disclosure and On-Line Information Access Agreement, and Copyright & Assignment Agreement.
Specifically, the tables outlining the terms of these agreements each contain a row addressing Epcon Communities' option to purchase the franchisee's business. In each instance, the summary column states "Not Applicable," indicating that this provision is not part of the agreement. This means that Epcon Communities does not have a contractual right to buy back a franchisee's business under the standard franchise terms.
For a prospective franchisee, this absence of a purchase option could be seen as both a benefit and a drawback. On one hand, it provides the franchisee with more autonomy and control over their business's future sale or transfer. On the other hand, it removes a potential exit strategy where the franchisor might be a ready buyer. Franchisees would need to find alternative buyers if they wish to sell their Epcon Communities business.