Does the Security Agreement outline conditions under which an Epcon Communities franchisee can terminate the franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 to renew or extend | Not Applicable | Not Applicable. |
| d. | Termination by franchisee | Not Applicable | Not Applicable. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable. |
| f. | Termination by franchisor with cause | Not Applicable | Not Applicable. |
| g. | "Cause" defined – curable | Not Applicable | Not Applicable. |
| h. | "Cause" defined – non curable | Not Applicable | Not Applicable. |
| i. | Franchisee's obligations on termination/non-renewal | 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 Security Agreement addresses the length and termination of the agreement. Specifically, the Security Agreement terminates upon the full performance, payment, and satisfaction of the franchisee's obligations. This means that once the franchisee has met all financial and contractual obligations outlined in the agreement, the Security Agreement will end.
Unlike some franchise agreements, the table outlining the Security Agreement terms indicates that there are no provisions for termination by the franchisee, or termination by the franchisor with or without cause. The document also states that there are no conditions for renewal or extension outlined in the Security Agreement.
This arrangement is fairly specific, focusing on the fulfillment of obligations rather than typical termination clauses found in many franchise agreements. A prospective Epcon Communities franchisee should ensure they fully understand the obligations tied to the Security Agreement and how their performance directly affects its termination.