What specific articles of the Epcon Communities Franchise Agreement relate to 'Default; Termination'?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. The undersigned acknowledges that he or she is a principal, an officer, a director or the owner of capital stock | |
|---|---|
| or a partnership interest (or another membership or control interest or investor in Franchisee) in one or both of | |
| ("Franchisee") and/or ("Sublicensee"). Franchisee has entered | |
| into a Franchise Agreement dated, by and between Franchisee and Epcon | |
| Communities Franchising, LLC (the "Franchise Agreement"). Sublicensee has entered into a Sublicense Agreement | |
| dated, by and between Franchisee and Sublicensee with the consent of Epcon | |
| Communities Franchising, LLC (the "Sublicense Agreement"). The undersigned acknowledges the direct personal | |
| benefit accruing to him or her under one or both of the Franchise Agreement and the Sublicense Agreement. |
- As an inducement to Epcon Communities Franchising, LLC to enter into the Franchise Agreement with Franchisee, and/or to consent to the Sublicense Agreement, and in consideration of the direct personal benefit to be derived by the undersigned thereby, the undersigned agrees that he or she shall be personally bound by all of the recitations, obligations and covenants of Franchisee contained in Article 5 ("Franchisee's Obligations"), Article 10 ("Confidentiality; Non-Disclosure; Proprietary Information"), Article 11 ("Completion of Project(s)"), Article 13 ("Default; Termination") and Article 16 ("Indemnification and Insurance") of the Franchise Agreement as if such recitations, obligations and covenants were made and given personally by the undersigned directly to Epcon Communities Franchising, LLC as a party to the Franchise Agreement, including without limitation the following:
The undersigned agrees not to communicate or otherwise divulge to, or use for the benefit of any third Party, any information or knowledge concerning the Epcon Communities Development System (as defined in the Franchise Agreement).
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Article 13 of the Franchise Agreement is related to 'Default; Termination'. Specifically, the guarantor acknowledges being bound by the obligations and covenants within Article 13. This means that the guarantor is personally responsible for the franchisee's obligations related to default and termination as outlined in the Franchise Agreement.
Additionally, in the addendum to the Epcon Communities Franchising, LLC Franchise Agreement for the state of Maryland, Section 13.1 of the Franchise Agreement concerning termination is modified. The modification adds a statement clarifying that the provision for termination upon bankruptcy may not be enforceable under federal bankruptcy law. This indicates that the standard termination clause related to bankruptcy might not be fully applicable in Maryland due to federal law.
Furthermore, a Termination and Release Agreement outlines the termination process, referencing specific articles and sections of the Franchise Agreement that remain in effect even after the termination agreement is signed. These include Article 10, Article 12, and Sections 5.8, 6.3, 13.7, 15.1, 16.1, 20.2 and 20.3 of the Franchise Agreement. This highlights that certain obligations, such as those related to confidentiality, post-termination duties, and specific legal clauses, survive the termination of the agreement.