Does Epcon Communities have a right of first refusal to acquire an Epcon Communities 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 summaries of various agreements, including 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 autonomy when deciding to sell your Epcon Communities franchise. Epcon Communities cannot step in to purchase the business themselves before you can sell to another buyer. This can provide more flexibility and potentially a better sale price, as you are not restricted by a pre-emptive right held by the franchisor.
It's important to note that while Epcon Communities does not have a right of first refusal, the franchisor's approval may still be required for any transfer of the franchise. A prospective franchisee should carefully review the conditions for transfer outlined in the franchise agreement to understand any limitations or requirements that may apply when selling their business.