Under what circumstances can Epcon Communities terminate the franchise with cause?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article in Non- Disclosure and On-Line Information Access Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 14 | Effective date until termination. |
| b. Renewal or extension of the | Not Applicable | Not Applicable. |
| term | ||
| c. Requirements for franchisee to renew or extend | Not Applicable | 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 without cause | Section 14 | We can terminate at any time, with or without notice for any reason or no reason, regardless of the status of your Franchise Agreement. |
| f. Termination by franchisor | Section 14 | We can terminate upon your failure to maintain |
| with cause | authorized franchisee status. | |
| g. “Cause” defined -- curable | Not Applicable | Not Applicable. |
| h. “Cause” defined -- non- | Not Applicable | Not Applicable. |
| curable | ||
| i. Franchisee’s obligations on | Section 14 | Cease use of Epcon Communities Intranet. |
| termination/nonrenewal | ||
| j. Assignment of contract by | Not Applicable | Not Applicable. |
| franchisor | ||
| k. “Transfer” by franchisee - | Not Applicable | Not Applicable. |
| defined | ||
| 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 | ||
| q. Non-competition covenants during the term of the franchise | Section 10 | You may not create a web site using Epcon, epcon.com, epconhomesandcommunities.com, epconcommunities.com, epconfranchising.com, EpconOpportunity.com and/or |
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 company can terminate a franchise agreement with cause if the franchisee fails to maintain authorized franchisee status. This is detailed in Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution of the franchise relationship.
This means that if an Epcon Communities franchisee does not meet the requirements to remain an authorized franchisee, Epcon Communities has the right to terminate the agreement. The FDD does not define what constitutes a failure to maintain authorized franchisee status.
Prospective franchisees should seek clarification from Epcon Communities regarding the specific conditions that define "authorized franchisee status" and what actions or omissions could lead to a termination for cause. Understanding these conditions is crucial for assessing the risks and responsibilities associated with the franchise.