Does Epcon Communities or its affiliates offer financing for the initial investment?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
While it is possible to pay the total initial investment with your own funds, most franchisees, whether purchasing raw land or developed lots, finance part of the initial investment needed for their project. Neither we nor our affiliates offer financing to you for your initial investment. The types of financing available, as well as the amounts financed, may differ from project to project and from franchisee to franchisee.
For franchisees who elect to purchase raw land and develop the lots for their project themselves, instead of purchasing developed lots, some of the most common types of financing, include the following:
- Traditional Acquisition and Development Loans
These loans are typically funded by a local or regional financial institution, require an upfront 25% to 35% equity contribution either funded by you or by investors you procure in an amount based on the total cost of acquisition of the land and development of the project site, and require interest-only payments during the initial development of your site and construction of Units, followed by principal repayment installments due at the time of closing on each Unit. Franchisees typically use the raw land they have purchased with cash as the required equity contribution by providing the lender with a lien against the property.
- Private Institutional Acquisition and Development Loans
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, neither Epcon Communities nor its affiliates offer financing to franchisees for their initial investment. However, the FDD does provide information regarding common types of financing that franchisees may pursue on their own.
For franchisees who choose to purchase raw land and develop lots themselves, common financing options include traditional acquisition and development loans. These loans, typically funded by local or regional financial institutions, require an upfront equity contribution of 25% to 35% of the total cost of land acquisition and project development. These contributions can be funded either by the franchisee or by investors they procure. Interest-only payments are usually required during the initial development and construction phases, followed by principal repayment installments upon the closing of each unit.
Another option is private institutional acquisition and development loans. The FDD notes that the types and amounts of financing available can vary significantly from project to project and from franchisee to franchisee. Prospective franchisees should consult with financial advisors to explore all available financing options and determine the best approach for their specific circumstances.