What was the advertising expense for Franchising for Epcon Communities for the year ended December 31, 2023?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
reasonably certain that the Company will exercise the option.
The Company has lease agreements with lease and non-lease components, however the Company has elected the practical expedient to account for the lease and non-lease components as a single lease.
Advertising Expenses
Adv
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the advertising expense for Franchising was $366,975 for the year ended December 31, 2023. Additionally, the advertising expense for Marketing, a wholly-owned subsidiary of Franchising, was $230,437 for the same period.
It is important to note that these figures represent the expenses incurred by both Franchising and its marketing subsidiary. Advertising costs are expensed as they are incurred. This means that Epcon Communities recognizes these costs on their income statement in the period they occur, rather than capitalizing them and amortizing them over time.
Prospective franchisees should consider these advertising expenses when evaluating the overall financial performance of Epcon Communities. Understanding the breakdown between Franchising and Marketing can provide insights into how the company invests in promoting the brand and supporting its franchisees. This information can be useful in assessing the potential return on investment and the level of support provided by the franchisor in terms of marketing and advertising.