Are there any conditions for Epcon Communities' approval of a transfer by a franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article or Section in Market Hold Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 2 | Reserved Market Area will be held for 6 months. |
| b. Renewal or extension of the | Not Applicable | Not Applicable. |
| term | ||
| c. Requirements for franchisee to renew or extend | Not Applicable | Although the term “renewal” does not apply to the Epcon franchise, the term renewal generally means that the franchise relationship is extended for an additional term of years. |
| 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/nonrenewal | ||
| j. Assignment of contract by | Not Applicable | Not Applicable. |
| franchisor | ||
| k. “Transfer” by franchisee -- | Section 5 | Market Hold Agreement is not assignable to any other |
| defined | party without our consent. | |
| l. Franchisor approval of a | Not Applicable | Not Applicable. |
| transfer by franchisee | ||
| m. Conditions for franchisor’s | Not Applicable | Not Applicable. |
| approval of a 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 |
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 conditions for franchisor's approval of a transfer are not applicable under the Sublicense Agreement, the Non-Disclosure and On-Line Information Access Agreement, and the Market Hold Agreement. This suggests that there are generally no specific, enumerated conditions that Epcon Communities requires a franchisee to meet for a transfer to be approved.
However, it is important to note that while specific conditions may not be explicitly listed, the Market Hold Agreement states in Section 5 that it "is not assignable to any other party without our consent." This implies that while there may not be pre-defined conditions, Epcon Communities' consent is still required for the transfer of the Market Hold Agreement. The franchisor retains discretion over transfer approvals.
Prospective franchisees should clarify with Epcon Communities what factors they consider when evaluating a potential transfer. Understanding the unwritten expectations or criteria can help a franchisee better prepare for a future transfer request and increase the likelihood of approval. While the FDD indicates no specific conditions, the franchisor's consent is still necessary, making further inquiry essential.