According to the Epcon Communities FDD, what is the definition of 'settlement price'?

According to Epcon Communities' 2025 Franchise Disclosure Document, the settlement price is defined as the gross sales price, as detailed in the Settlement Statement or Closing Disclosure. Alternatively, it is the total of the 'Sale Price of the Property' and the 'Sale Price of any Personal Property included in Sale' in a Settlement Disclosure Form. In some instances, it is the amount reported to the appropriate county office where the project is located. This definition is crucial for understanding the financial performance representations made in Item 19 of the FDD.

For a prospective Epcon Communities franchisee, the settlement price is a key metric because it directly impacts revenue and profitability. Item 19 uses the settlement price to calculate averages, medians, minimums, and maximums for detached units across both franchisee and corporate projects. Understanding how this price is determined ensures that franchisees can accurately assess their own financial performance against these benchmarks.

The FDD uses the settlement price to evaluate the success of projects based on absorption rates and unit sales. For example, the document mentions that the number of detached Units that achieved results above the average detached Unit settlement price was 244 (45%) and the number detached Units that achieved results below the average Unit settlement price was 302 (55%). This comparison helps potential franchisees gauge the potential market performance of their projects relative to existing ones.

It is important for prospective franchisees to understand that the settlement price may vary based on the method of data collection. In some cases, sales data is collected directly from franchisees through monthly closing reports, while in other cases, it is obtained by searching county property records. This variation in data collection methods could potentially affect the accuracy and consistency of the reported settlement prices. Therefore, franchisees should clarify with Epcon Communities the specific data collection methods used in their region to ensure accurate financial analysis.