Does Epcon Communities warrant that its Development System will comply with building codes or other laws?

Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain any explicit statements regarding Epcon Communities warranting that its Development System will comply with building codes or other laws. The FDD excerpts focus on the franchisee's obligations, confidentiality, protection of the Development System as a trade secret, and the ownership and usage rights of Epcon Communities' intellectual property. The excerpts also discuss the franchisee's agreement to abide by all applicable local, state, federal, and international laws and regulations in their use of the Epcon Communities Intranet.

Given the absence of an explicit warranty, a prospective Epcon Communities franchisee should not assume that the Development System automatically ensures compliance with all relevant building codes and laws. It is standard practice in the construction and development industry for franchisees or developers to bear the responsibility of ensuring their projects meet all legal and regulatory requirements.

Therefore, it is crucial for a potential Epcon Communities franchisee to conduct thorough due diligence, including consulting with legal and construction experts, to verify that the Development System can be adapted to comply with local building codes and regulations. A prospective franchisee should directly ask Epcon Communities about their responsibilities regarding compliance with local, state, and federal laws and regulations. This inquiry should cover whether the franchisee or franchisor is ultimately responsible for ensuring compliance and bearing any associated costs.