Does Epcon Communities have a right of first refusal to acquire a franchisee's business?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
rtain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.**
Franchise Agreement
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| i. Franchisee’s obligations on termination/non-renewal | Section 5 | Cease use and, if applicable, return to us, the Marks, Epcon Communities Works, Development System or systems or parts of the Development System; cancel recording of Sublicense Agreement in all governmental records. |
| j. Assignment of contract by | Not Applicable | No restrictions on our right to assign as long as our |
| franchisor | obligations are assumed upon assignment. | |
| k. “Transfer” by franchisee -- | Section 1 | Transfer includes any transfer of the rights granted under |
| defined | the Sublicense Agreement. | |
| l. Franchisor approval of a | Not applicable | Not Applicable. |
| transfer by franchisee | ||
| m. Conditions for franchisor’s | Section 1 | Not Applicable. |
| approval of a transfer | ||
| n. Franchisor’s right of first | Not Applicable | Not Applicable. |
| refusal to acquire | ||
| franchisee’s business | ||
| o. Franchisor’s option to | Not Applicable | Not Applicable. |
| purchase franchisee’s | ||
| business | ||
| p. Death or disability of | Not Applicable | Not Applicable. |
| franchisee | ||
| q. Non-competition covenants | Not Applicable | Non-competition covenants in Section 10.6 of the |
| during the term of the | Franchise Agreement apply during the term of the | |
| franchise | Sublicense Agreement. | |
| r. |
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, Epcon Communities does not have a right of first refusal to acquire a franchisee's business. This is explicitly stated as 'Not Applicable' in the provided tables for the Sublicense Agreement, Market Hold Agreement, and Non-Disclosure and On-Line Information Access Agreement.
For a prospective franchisee, this means that you have more freedom to sell or transfer your Epcon Communities franchise to a third party without first having to offer it to Epcon Communities. This can be a significant advantage, as it allows you to potentially negotiate a better price and terms with an outside buyer.
However, it is important to note that while Epcon Communities does not have a right of first refusal, the franchisor approval of a transfer by a franchisee is marked as 'Not applicable' in the tables. A prospective franchisee should clarify the conditions and requirements for transferring the franchise with Epcon Communities.