What state's laws govern the Mortgage agreement with Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
ommunities must hold initial training sessions for the benefit of Assignee, or Assignee's agents and employees, Assignee agrees to pay to Epcon Communities a reasonable tuition fee for each attendee attending such training.
| Franchisor: Epcon Communities Franchising, LLC |
|---|
| By: |
| Joseph R. Karpowicz, General Counsel |
| By: |
| Paul W. Hanson, President |
| Date: |
EXHIBIT J OF FRANCHISE DISCLOSURE DOCUMENT
EXHIBIT "7" (to Franchise Agreement)
[THE SPECIFIC FORM OF MORTGAGE OR SECURITY INSTRUMENT USED IN EACH JURISDICTION WILL VARY TO COMPLY WITH APPLICABLE STATE AND LOCAL LAWS.]
MORTGAGE
A. This Mortgage is made by and between: 1. (NAME OF MORTGAGOR), a(n) (STATE OF MORTGAGOR'S ORGANIZATION) (TYPE OF ENTITY) whose address is ("Mortgagor"); and 2. EPCON COMMUNITIES FRANCHISING, LLC, an Ohio limited liability company located at 500 Stonehenge Parkway, Dublin, Ohio 43017 ("Mortgagee"). B. For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Mortgagor mortgages, hypothecates, pledges, grants, conveys, bargains, sells, and transfers to Mortgagee: 1. All of Mortgagor's fee simple right, title, and interest in the property described in attached Schedule A, including, without limitation, any and all appurtenances thereto, and any and all buildings, structures, fixtures, and improvements thereon, whether now or later existing (collectively "Property"); 2. All rents, revenues, profits, sale proceeds, and other benefits relating to the Property ("Rents"); C. This Mortgage secures payment of any and all present and future franchise fees owed by Mortgagor to Mortgagee pursuant to that certain Franchise Agreement dated, 20, including but not limited to the Point of Closing Royalty Payments as defined in the Franchise
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, the specific form of mortgage or security instrument used by Epcon Communities will vary based on the state and local laws applicable in each jurisdiction. The FDD states that the mortgage is between the mortgagor and Epcon Communities Franchising, LLC, located in Dublin, Ohio. In the event of a default under the obligations outlined in the mortgage, Epcon Communities, to the extent permitted by law, can foreclose upon the property in accordance with the private, nonjudicial foreclosure procedures prescribed by state law. However, if state law prohibits private foreclosure sales, Epcon Communities may institute court proceedings for complete or partial foreclosure upon sale of the property in accordance with state law.
This means that while Epcon Communities' mortgage agreement is with an Ohio-based company, the actual enforcement and legality of the mortgage are heavily dependent on the specific real estate laws of the state where the mortgaged property is located. Prospective franchisees should be aware that the mortgage terms and foreclosure processes can differ significantly from state to state.
Therefore, it is crucial for franchisees to consult with a legal professional in their specific state to fully understand the implications of the mortgage agreement and how local laws will affect their rights and obligations. The FDD highlights the importance of adhering to state and local laws, indicating that Epcon Communities aims to ensure compliance with varying legal requirements across different jurisdictions.