For Epcon Communities, what activities are included in the initial investment period after signing the Franchise Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The information in the tables above and the notes below is provided to help you determine the amount of the initial investment that is needed during your initial investment period. For purposes of Item 7, the initial investment period (a) starts on the date the Franchise Agreement is signed, (b) includes the time required to: (1) identify a site appropriate for an Epcon community; (2) enter into a purchase contract for raw land or developed lots; (3) complete the required due diligence to assure the property is suitable for your project; (4) conduct a market study; (5) complete a land plan; (6) complete engineering; (7) complete modifications to the prototype architectural plans; (8) complete land entitlement (if purchasing raw land); (9) purchase the land or developed lots; (10) construct a model home Unit to be offered for sale and leaseback; and (11) construct the first Unit in your project to be offered for sale; and (c) includes an initial period of operations of three (3) months, which typically begins on the date the last of the items in (b) (1) through (11) are completed.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the initial investment period begins when the Franchise Agreement is signed and includes several key activities. These activities encompass the entire process of establishing an Epcon community, from site selection to initial operations. The initial investment period also includes an initial period of operations of three months, which typically begins on the date the last of the items are completed.
Specifically, the initial investment period includes identifying a suitable site, entering into a purchase contract for raw land or developed lots, and completing due diligence to ensure the property is appropriate for the project. It also involves conducting a market study, completing a land plan and engineering work, and modifying prototype architectural plans to fit local requirements. If purchasing raw land, franchisees must also complete land entitlement processes.
Furthermore, the initial investment period covers the actual purchase of land or developed lots, construction of a model home unit for sale and leaseback, and construction of the first unit in the project to be offered for sale. These activities are crucial for setting up the Epcon Communities project and preparing it for sales and operations. Franchisees should consult with professionals to fully understand the real estate purchase and development processes and associated costs and risks.