Until what date is the license agreement between Epcon Communities and IP86 in effect?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Through a license agreement with Home Page that was assigned to IP86 on April 15, 2016, we have the right to use the Marks and to license to you the use of the Marks for use in the development of your project(s) in accordance with the terms of your Franchise Agreement. Because we are a successor to ECFI, pursuant to the license agreement, ECFI's rights under the license agreement to use and license franchisees the rights to use the Intellectual Property became our rights on December 31, 2019. Our license agreement with IP86 is in effect until December 31, 2025, and renews automatically for successive one (1) year periods, unless prior to the expiration of the term, we or IP86 gives the other party at least three (3) months prior written notice of termination. Additionally, the agreement may be terminated if: (1) we fail to pay royalty payments under the license agreement when they are due; (2) any of the following relating to bankruptcy occur: (i) we make an assignment for the benefit of creditors or enter into an arrangement with our creditors, (ii) a receiver, custodian, trustee or liquidator is appointed for us or for a material part of our properties, or proceedings are commenced seeking appointment of a receiver, custodian, trustee or liquidator and is not dismissed within 60 days, (iii) a voluntary bankruptcy petition is filed by us or on our behalf, (iv) we suffer an order for relief under federal bankruptcy law or apply for, consent to or authorize an application of any bankruptcy, reorganization, arrangement, readjustment of debt, insolvency, dissolution, liquidation or other similar law, or proceedings are commenced seeking an application and is not dismissed within sixty (60) days, (v) a material part of our properties are attached or subjected to a lien, which is not removed within sixty (60) days, (vi) we do not pay our debts as they become due, (vii) we conceal or remove a material part of our assets, with an intent to hinder or delay our creditors, or (viii) we transfer a material part of our property for the benefit of a creditor at a time when other similar creditors have not been paid, or (3) we fail to cure a default under the license agreement. Termination of the license agreement with IP86 will not materially alter your rights to use the trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 50–53)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the license agreement between Epcon Communities and IP86 is in effect until December 31, 2025. The agreement automatically renews for successive one-year periods unless either party provides at least three months' written notice of termination before the expiration date. This means that unless Epcon Communities or IP86 notifies the other party by September 30, 2025, the agreement will automatically extend to December 31, 2026.
Several conditions could lead to the termination of the license agreement before the expiration date. These include failure by Epcon Communities to make royalty payments, or certain bankruptcy-related events involving Epcon Communities, such as assigning assets for the benefit of creditors, the appointment of a receiver, or the filing of a bankruptcy petition. Additionally, failure to address a default under the license agreement could also trigger termination.
However, the FDD states that the termination of the license agreement with IP86 will not materially alter a franchisee's rights to use the trademarks. This suggests that even if the agreement between Epcon Communities and IP86 ends, franchisees should still be able to use the trademarks associated with the Epcon Communities system. Prospective franchisees should confirm with Epcon Communities how trademark usage rights would be maintained if the IP86 agreement is terminated.