Does the Secured Party's making expenditures on the Collateral for Epcon Communities waive any Event of Default?

According to Epcon Communities' 2025 Franchise Disclosure Document, the Secured Party's decision to make expenditures related to the Collateral does not constitute a waiver or cure of any Event of Default. This means that even if the Secured Party, at its discretion, pays taxes, maintains the Collateral, makes repairs, or covers filing fees or insurance premiums on behalf of the Debtor (franchisee), such actions will not be interpreted as a relinquishment of their rights following an Event of Default.

This provision protects the Secured Party's interests by ensuring that their actions to preserve the value of the Collateral do not inadvertently prevent them from exercising their rights and remedies in case of a default. The franchisee remains responsible for reimbursing the Secured Party for these expenditures upon demand.

This is a standard practice in secured lending agreements, where the lender wants to retain the ability to act in the best interest of preserving the collateral's value without sacrificing their legal recourse in the event of a default by the borrower. For a prospective Epcon Communities franchisee, this implies that they cannot rely on the Secured Party's actions to protect the Collateral as a sign that a default will be overlooked or forgiven.