Regarding the Epcon Communities franchise, can a franchisee's statement, questionnaire, or acknowledgment waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor?

According to the 2025 Epcon Communities Franchise Disclosure Document, a franchisee's statement, questionnaire, or acknowledgment cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This protection is consistently reinforced through addenda to the franchise agreement, specifically addressing state franchise laws. This provision supersedes any other term of any document executed in connection with the franchise. These stipulations are included in addenda for Illinois, Indiana, Maryland, Minnesota, North Dakota, Rhode Island, South Dakota, Virginia, and Wisconsin.

This means that even if an Epcon Communities franchisee signs a document that appears to waive their rights to make claims against the franchisor for violations of state franchise law or fraudulent inducement, that waiver will not be legally enforceable. This is a significant protection for franchisees, as it prevents them from inadvertently giving up their legal rights during the initial stages of the franchise relationship. It also ensures that franchisees can rely on the statements and representations made by Epcon Communities during the franchise sales process.

For prospective Epcon Communities franchisees, this provision offers a degree of security. It confirms that they retain their rights under state franchise laws, regardless of any statements they might make when starting the franchise. This protection is particularly important in states with strong franchise laws, as it ensures that franchisees can pursue legal remedies if they believe they have been misled or treated unfairly by the franchisor. The inclusion of this clause in multiple state-specific addenda highlights Epcon Communities's awareness of and commitment to complying with varying state franchise regulations.

However, franchisees should still exercise caution and seek legal advice before signing any documents related to the franchise agreement. While these provisions protect against unintentional waivers, they do not eliminate the need for franchisees to understand their rights and obligations fully. Franchisees should also be aware that the specific protections afforded by state franchise laws can vary significantly from state to state. Therefore, it is essential to consult with an attorney who is familiar with the franchise laws in the franchisee's state.