Where in the Security Agreement can I find the obligations concerning the collateral for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Article(s)/Section(s)/ Paragraph(s) in Agreement or Addendum | Disclosure Document Item | |
|---|---|---|---|
| gg. | Change to name, address, officers or type of business organization | Paragraph 6 of the Security Agreement | Not Applicable |
| hh. | Obligations concerning the collateral. | Paragraph 8 of the Security Agreement | Not Applicable |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 35–38)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations. Specifically, it indicates that the obligations concerning the collateral are detailed in Paragraph 8 of the Security Agreement. This section of the FDD serves as a roadmap, directing franchisees to the precise location within the legal documents where they can find comprehensive information about their responsibilities related to the collateral.
For a prospective Epcon Communities franchisee, this means that understanding Paragraph 8 of the Security Agreement is crucial. This paragraph will likely detail what assets are considered collateral, the conditions under which the collateral may be at risk, and the franchisee's responsibilities in maintaining and protecting the collateral. It is important to carefully review this section to fully understand the financial implications and potential risks associated with the security agreement.
Furthermore, Item 9 also points to other paragraphs within the Security Agreement that outline franchisee obligations. Paragraph 2 discusses the grant of security interest in after-acquired property and assets including proceeds, while Paragraph 4 details the actions necessary for attachment, perfection, and first priority. Paragraph 6 covers changes to name, address, officers, or type of business organization, and Paragraphs 12, 17, and 18 address dispute resolution. Understanding these paragraphs in conjunction with Paragraph 8 will provide a comprehensive view of the franchisee's obligations under the Security Agreement.