Within the ten-year period immediately preceding the application for registration, has any party been convicted of or pleaded nolo contendere to a misdemeanor charge or been the subject of a civil action alleging violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations related to Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 3 of the disclosure document is hereby modified by adding the following language to the end thereof:
"With the exception of what is stated above, the following applies to ECFL, its predecessors or a person identified in Item 2 of this disclosure document:
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, with the stated exceptions, no party has been convicted of or pleaded nolo contendere to a misdemeanor charge or been the subject of a civil action alleging violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations within the ten-year period immediately preceding the application for registration. This statement applies to ECFL (Epcon Communities Franchising, LLC), its predecessors, and individuals identified in Item 2 of the FDD.
This disclosure indicates that Epcon Communities aims to maintain a clean legal record concerning franchise-related misconduct, fraud, or securities law violations. For a prospective franchisee, this suggests a lower risk of encountering legal issues related to the franchisor's past actions. It is common for franchise agreements to include clauses that allow the franchisor to terminate the agreement if the franchisee is convicted of a crime or engages in unethical business practices.
However, it is important to note the exceptions to this statement. While the general declaration is reassuring, prospective franchisees should carefully review Item 2 and any other relevant sections of the FDD to understand the specific exceptions and their potential implications. Item 2 lists the directors, principal officers, and other executives who are affiliated with the franchise. A prospective franchisee should carefully examine Item 2 to see if there are exceptions that apply to those individuals.