Who is responsible for correcting inaccuracies in the Epcon Communities plans and materials?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, if Assignor is not in full compliance with the terms of each such agreement(s) but either of the following occur Epcon Communities shall consent to the assignment: (i) if Assignor's noncompliance is due to nonpayment of amounts due to Epcon Communities related to the subject Project, Assignee shall pay any fees related to such Project that are past due and payable to Epcon Communities and shall agree to pay any fees related to such Project that become due and payable to Epcon Communities in the future, or (ii) if Assignor's non-compliance is due to a material default in Assignor's use of the Development System in the construction of the Project, Assignee agrees to correct such material defaults and use the entire Development System without modification or deviation.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, if an Assignor (the original franchisee) is not in full compliance with the terms of their agreements with Epcon Communities due to a material default in their use of the Development System in the construction of a project, the Assignee (the new franchisee taking over the project) is responsible for correcting those defaults. This correction must involve using the entire Development System without any modifications or deviations.
This means that if a previous franchisee made errors or deviated from the approved construction plans and materials, the incoming franchisee is obligated to rectify those issues to bring the project into compliance with Epcon Communities' standards. This responsibility is triggered when the original franchisee's non-compliance is due to a material default in the use of the Development System during construction.
For a prospective Epcon Communities franchisee, this highlights the importance of thoroughly assessing any existing projects they might take over from another franchisee. It's crucial to identify any deviations from the approved Development System and understand the scope and cost of correcting those issues. Failure to do so could result in unexpected expenses and delays in completing the project according to Epcon Communities' requirements.
This clause ensures that Epcon Communities maintains consistency and quality across all its projects, even when there are changes in franchise ownership. It also protects the brand's reputation by requiring that any deficiencies are addressed by the new franchisee, reinforcing the importance of adhering to the Development System.