In the Security Agreement, what are Epcon Communities franchisees required to do regarding financing statements and amendments?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
licable | Not Applicable. | | w. Choice of law | Paragraph F | Subject to applicable state law, the laws of the State where the property is located applies. |
| Provision | Article or Section in Security Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Paragraph 19 | Terminates upon full performance, payment and satisfaction of your obligations. |
| b. Renewal or extension of the term | Paragraphs 3 and 4 | You authorize us to file financing statements and amendments and agree to sign, deliver to us, or file financing statements and amendments relating to the collateral. |
| c. Requirements for franchisee | Not Applicable | Not Applicable. |
| to renew or extend | ||
| d. Termination by franchisee | Not Applicable | Not Applicable. |
| e. Termination by franchisor | Not Applicable | Not Applicable. |
| without cause | ||
| f. Termination by franchisor | Not Applicable | Not Applicable. |
| with cause | ||
| g. “Cause” defined – curable | Not Applicable | Not Applicable. |
| h. “Cause” defined – non- | Not Applicable | Not Applicable. |
| curable | ||
| i. Franchisee’s obligations on | Not Applicable | Not Applicable. |
| termination/non-renewal | ||
| j. Assignment of contract by | Not Applicable | Not Applicable. |
| franchisor | ||
| k. “Transfer” by franchisee – | Not Applicable | Not Applicable. |
| defined | ||
| l. Franchisor approval of | Not Applicable | Not Applicable. |
| transfer by franchisee | ||
| m. Conditions for franchisor | Not Applicable | Not Applicable. |
| approval of transfer | ||
| n. Franchisor’s right of first | Not Applicable | Not Applicable. |
| refusal to acquire | ||
| franchisee’s business | ||
| o. Franchisor’s option to | Not Applicable | Not Applicable. |
| purchase franchisee’s | ||
| business | ||
| p. Death or disability of | Not Applicable | Not Applicable. |
| franchisee | ||
| q. Non-competition covenants | Not Applicable | Not Applicable. |
| during the term of the | ||
| franchise | ||
| r. Non-competition covenants | Not Applicable | Not Applicable. |
| after the franchise is | ||
| terminated or expires | ||
| s. Modification of the | Not Applicable | Not Applicable. |
| Agreement | ||
| t. Integration/merger clause | Not Applicable | Not Applicable. |
| u. Dispute resolution by | 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, in the Security Agreement, franchisees are required to authorize Epcon Communities to file financing statements and amendments. Additionally, franchisees must agree to sign, deliver, or file these financing statements and amendments related to the collateral.
This means that as an Epcon Communities franchisee, you grant the company the authority to manage the legal documentation (financing statements and amendments) that protect their interest in the collateral used to secure your obligations under the franchise agreement. Collateral typically refers to assets like equipment, inventory, or accounts receivable that are pledged as security for a loan or other financial obligation.
By agreeing to sign, deliver, or file these documents, you are legally bound to cooperate with Epcon Communities in perfecting their security interest. This ensures that Epcon Communities has a valid and enforceable claim on the collateral in the event of default or breach of contract. Prospective franchisees should carefully review the Security Agreement to understand the full scope of the collateral and the implications of these financing statements and amendments.