Is the Secured Party required to marshal any collateral security for the Obligations related to Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Marshalling.
The Secured Party shall not be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the secured party is not required to marshal any collateral security for obligations. This means that Epcon Communities has the right to pursue any and all collateral without having to prioritize or combine them in a specific way.
For a prospective franchisee, this clause provides significant protection to Epcon Communities in the event of a default. Epcon Communities can choose which assets to pursue and in what order, potentially leading to a faster and more complete recovery of funds. This flexibility reduces the risk for Epcon Communities and ensures they can act in their best interest to recover any outstanding debts or obligations.
This type of clause is relatively standard in franchise agreements where collateral is involved. It protects the franchisor's interests by giving them maximum flexibility in recovering debts. Franchisees should be aware of this provision and understand that Epcon Communities is not obligated to consider the franchisee's perspective when pursuing collateral.