Does Epcon Communities have the right to terminate the mortgage with cause?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article or Section in Mortgage | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Paragraph E (1) and (2) | We will terminate the mortgage entirely upon payment of all sums secured by the Mortgage and performance of all of obligations under the Mortgage. We will provide partial release of mortgage upon payment of applicable percent of sales price of each Unit. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable. |
| f. | Termination by franchisor with cause | Not Applicable | Not Applicable. |
| g. | "Cause" defined curable | Not Applicable | Not Applicable. |
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, the franchisor's right to terminate the mortgage with cause is addressed within Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution. Specifically, the table summarizes various provisions related to the mortgage agreement.
The table indicates that there are circumstances under which Epcon Communities can terminate the mortgage. However, the excerpt indicates that the franchisor does not have the right to terminate the mortgage with cause.
Prospective franchisees should carefully review the full franchise agreement and related documents, paying close attention to the sections referenced in the table (such as Paragraph E and F) to fully understand their rights and obligations regarding mortgage termination. It would be prudent to seek legal counsel to clarify these provisions and assess the potential risks and benefits associated with the mortgage terms.