Does the Security Agreement outline any requirements for an Epcon Communities franchisee to renew or extend their term?
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. |
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 does not specify any requirements for a franchisee to renew or extend their term. While the term "renewal" does not technically apply to the Epcon Communities franchise, the FDD clarifies that renewal generally refers to extending the franchise relationship for an additional term.
Specifically, the table in Item 17 indicates that under the Security Agreement, the provision regarding "Requirements for franchisee to renew or extend" is marked as "Not Applicable" in the summary column. This suggests that the Security Agreement does not impose any conditions or steps that a franchisee must take to extend the franchise term.
However, the Security Agreement does address the length of the franchise term, stating in Paragraph 19 that it terminates upon full performance, payment, and satisfaction of the franchisee's obligations. Additionally, Paragraphs 3 and 4 mention that the franchisee authorizes Epcon Communities to file financing statements and amendments and agrees to sign and deliver or file these documents related to the collateral. While these paragraphs don't directly address renewal requirements, they do outline obligations related to the financial aspects of the franchise agreement, which could indirectly influence the continuation of the franchise relationship.