Does Epcon Communities have the right to terminate the mortgage without 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. |
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 without cause is addressed in Item 17, specifically within the context of the franchise relationship. The document indicates that the franchisor does not have the right to terminate the mortgage without cause.
Specifically, the table outlines various provisions related to termination, including termination by the franchisee and termination by the franchisor, both with and without cause. For termination by the franchisee, the summary explains that Epcon Communities will terminate the mortgage entirely upon the franchisee's payment of all sums secured by the mortgage and the performance of all obligations under the mortgage. They will also provide partial release of the mortgage upon payment of the applicable percentage of the sales price of each unit.
However, when it comes to termination by the franchisor, both with and without cause, the table indicates "Not Applicable" in the summary column. This suggests that there are no specific clauses or conditions outlined in the mortgage that would allow Epcon Communities to terminate the mortgage either with or without cause, as far as the mortgage agreement is concerned. This is distinct from the Non-Disclosure and On-Line Information Access Agreement, where termination without cause is permitted. Therefore, the franchisee is protected from arbitrary mortgage termination, provided they meet their financial obligations and adhere to the terms of the mortgage agreement.