Under what conditions can Epcon Communities review an Epcon Communities franchisee's records?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.3 At any reasonable time during the term of this Agreement, Franchisor's representative(s,) may without prior notice, enter upon the premises of any Project of Franchisee to observe the Project and the progress towards completion thereof and to assure the nature and quality of all Projects associated with the Marks and the Epcon Communities Works (as defined in Section 2.12 hereof).
Upon such entry by Franchisor's representative(s), Franchisee shall cooperate in every way with such review and observation.
Upon ten (10) days' written notice, Franchisor's representatives may enter upon the premises of any office of Franchisee wherever located (including after termination of this Agreement) and review Franchisee's records relevant to the Projects.
Franchisee shall cooperate with the audit process by providing a work area where the records are maintained, permit the copying of such records and shall make a knowledgeable representative of Franchisee available to explain the books and records and answer questions from Franchisor's representative(s).
Any evaluation or inspection is not intended to exercise, and does not constitute, control over Franchisee's day-to-day operation of its business or the Project.
Any evaluation or inspection is also not intended to be, and does not constitute, an analysis of Franchisee's compliance with applicable federal, state, and local laws, regulations, ordinances, and codes.
Any evaluation or inspection is to protect Franchisor's interests in the Development System and the Marks and not for the purpose of establishing any control or duty to take control over those matters that are reserved to Franchisee.
- 5.4 If Franchisee fails to remit to Franchisor when due any payment required under the terms of this Agreement, Franchisee agrees to pay to Franchisor all of Franchisor's costs of collection of the amount(s) of such outstanding payments, including reasonable attorney's fees and disbursements, and interest on the unpaid amounts at the lesser of eighteen percent (18%) per annum or the highest rate statutorily permissible, for the period commencing on the date such amount(s) were due to be paid to Franchisor and ending on the date such amount(s) are received by Franchisor in finally collectible funds.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Epcon Communities has specific rights to review a franchisee's records under certain conditions. Epcon Communities' representatives can enter a franchisee's project premises at any reasonable time, without prior notice, to observe the project's progress and ensure the quality aligns with the Epcon Communities brand and standards. During such visits, the franchisee is expected to fully cooperate with the review and observation process. These evaluations are designed to protect Epcon Communities' interests in its development system and marks, and do not constitute control over the franchisee's daily operations or compliance with laws.
Additionally, Epcon Communities' representatives can enter the premises of any franchisee's office, with ten days' written notice, to review records relevant to the projects. This access extends to any office location, even after the franchise agreement has been terminated. During these audits, the franchisee must provide a suitable work area for reviewing records, allow the copying of these records, and ensure a knowledgeable representative is available to explain the records and answer any questions from Epcon Communities' representatives.
If a franchisee fails to make payments when due, according to the franchise agreement, they are responsible for covering Epcon Communities' collection costs. These costs include reasonable attorney's fees and disbursements, along with interest on the unpaid amounts. The interest is calculated at a rate of either 18% per annum or the highest rate legally permissible, starting from the date the payment was originally due until it is fully received by Epcon Communities.