Under what conditions does Epcon Communities consent to
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Epcon Communities' duties and obligations pursuant to the terms of the Franchise Agreement and Market Area Agreement or Small Market Area Agreement, as applicable, are not altered or otherwise increased.
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- Epcon Communities shall be paid any and all payments specified in the Franchise Agreement no later than the applicable payment due dates.
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- Assignor fully complies with the terms of the Franchise Agreement, Market Area Agreement or Small Market Area Agreement, as applicable, and any and all other agreements between Epcon Communities and Assignor. Notwithstanding the foregoing, if Assignor is not in full compliance with the terms of each such agreement(s) but either of the following occur Epcon Communities shall consent to the assignment: (i) if Assignor's noncompliance is due to nonpayment of amounts due to Epcon Communities related to the subject Project, Assignee shall pay any fees related to such Project that are past due and payable to Epcon Communities and shall agree to pay any fees related to such Project that become due and payable to Epcon Communities in the future, or (ii) if Assignor's non-compliance is due to a material default in Assignor's use of the Development System in the construction of the Project, Assignee agrees to correct such material defaults and use the entire Development System without modification or deviation.
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- Assignee fully complies with the terms of the Franchise Agreement and Market Area Agreement or Small Market Area Agreement, as applicable, including without limitation, upon its decision to use the Development System to complete a Project or Projects, providing to Epcon Communities copies of the documents attached as Exhibit "2" and/or Exhibit "2A" to the Franchise Agreement executed by those individuals who will be acting on behalf of Assignee in completing any Project(s) and will be provided more detailed information regarding the Development System than has been provided to the general public.
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- In the event that Epcon Communities 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.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, Epcon Communities outlines specific conditions under which they will consent to an assignment of franchise rights. Epcon Communities's duties and obligations pursuant to the terms of the Franchise Agreement, Market Area Agreement, or Small Market Area Agreement are not altered or increased due to the assignment. All payments specified in the Franchise Agreement must be paid to Epcon Communities no later than the applicable payment due dates. The assignor must fully comply with the terms of the Franchise Agreement, Market Area Agreement, or Small Market Area Agreement, as well as any other agreements between Epcon Communities and the assignor.
However, Epcon Communities will still consent to the assignment even if the assignor is not in full compliance, provided certain conditions are met. If the noncompliance is due to nonpayment of amounts related to the project, the assignee must pay any past due fees and agree to pay future fees. If the non-compliance results from a material default in the assignor's use of the Development System in the construction of the project, the assignee must agree to correct the defaults and use the Development System without modification or deviation.
Furthermore, the assignee must fully comply with the terms of the Franchise Agreement, Market Area Agreement, or Small Market Area Agreement. This includes providing Epcon Communities with copies of required documents executed by individuals acting on behalf of the assignee who will be completing any projects and will be provided more detailed information regarding the Development System. If Epcon Communities must hold initial training sessions for the assignee or their agents and employees, the assignee must pay a reasonable tuition fee for each attendee.