Who is responsible for indemnifying Epcon Communities against claims of property damage during the removal of marks after termination?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall indemnify and hold Franchisor harmless from and against any claims that Franchisor damaged property in the process of removing or obliterating such Marks.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the franchisee is responsible for indemnifying Epcon Communities against any claims of property damage that may occur when Epcon Communities removes or obliterates its marks from the franchisee's project site after the franchise agreement terminates or expires.
This means that if Epcon Communities enters the franchisee's premises to remove their branding and causes damage during the process, the franchisee is responsible for covering any resulting claims or costs. The franchisee must protect Epcon Communities from any liabilities, including legal fees, arising from such property damage.
This requirement protects Epcon Communities from potential financial losses due to property damage during de-identification of a former franchise location. It also places the onus on the franchisee to ensure their properties are returned to a neutral state, free of Epcon Communities' branding, upon termination of the agreement. Prospective franchisees should carefully consider this indemnification clause and factor in potential costs associated with property damage during mark removal when evaluating the franchise opportunity.