Under what conditions will Epcon Communities terminate the mortgage entirely?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article or Section in Mortgage | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Paragraph E (1) and (2) | We will terminate the mortgage entirely upon payment of all sums secured by the Mortgage and performance of all of obligations under the Mortgage. We will provide partial release of mortgage upon payment of applicable percent of sales price of each Unit. |
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's 2025 Franchise Disclosure Document, the mortgage on the property will be terminated entirely when the franchisee has paid all sums secured by the mortgage and has performed all obligations under the mortgage. Additionally, Epcon Communities will provide a partial release of the mortgage upon payment of the applicable percentage of the sales price for each unit. This means that as an Epcon Communities franchisee pays off their debt and fulfills their contractual duties related to the mortgage, they can expect the mortgage to be fully terminated.
This provision protects the franchisee by ensuring that once all financial and contractual obligations are met, Epcon Communities will release its claim on the property. The partial release option provides flexibility, allowing franchisees to reduce their mortgage burden as they sell individual units within their development.
It is important for a prospective Epcon Communities franchisee to fully understand the terms of the mortgage agreement, including the specific obligations and payment schedules, to ensure they can meet the conditions for full mortgage termination. Understanding these terms is vital for managing their investment and planning for the financial future of their franchise.