Under what conditions can the Epcon Communities Sublicense Agreement be modified?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section of Sublicense Agree ment | Summary |
|---|---|---|
| i. Franchisee’s obligations on termination/non-renewal | Section 5 | Cease use and, if applicable, return to us, the Marks, Epcon Communities Works, Development System or systems or parts of the Development System; cancel recording of Sublicense Agreement in all governmental records. |
| j. Assignment of contract by | Not Applicable | No restrictions on our right to assign as long as our |
| franchisor | obligations are assumed upon assignment. | |
| k. “Transfer” by franchisee -- | Section 1 | Transfer includes any transfer of the rights granted under |
| defined | the Sublicense Agreement. | |
| l. Franchisor approval of a | Not applicable | Not Applicable. |
| transfer by franchisee | ||
| m. Conditions for franchisor’s | Section 1 | 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 | Not Applicable | Non-competition covenants in Section 10.6 of the |
| during the term of the | Franchise Agreement apply during the term of the | |
| franchise | Sublicense Agreement. | |
| r. Non-competition covenants | Not Applicable | Non-competition covenants in Section 13.7 of the |
| after the franchise is | Franchise Agreement apply during the term of the | |
| terminated or expires | Sublicense Agreement. | |
| s. Modification of the | Section 10.E | No modifications unless they are in writing and signed by |
| Agreement | both parties. |
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 Sublicense Agreement can only be modified if the changes are documented in writing and signed by both parties. This requirement ensures that any alterations to the original agreement are formally agreed upon and legally binding, protecting both Epcon Communities and the franchisee.
This stipulation is a standard practice in franchising, as it provides clarity and prevents disputes arising from verbal agreements or misunderstandings. By requiring written and signed modifications, Epcon Communities ensures that all parties are fully aware of any changes to their contractual obligations and rights.
Prospective Epcon Communities franchisees should pay close attention to this clause, understanding that any desired changes to the Sublicense Agreement must be formally documented and agreed upon by both parties to be enforceable. This protects the franchisee by ensuring that Epcon Communities cannot unilaterally change the terms of the agreement without their consent.