What is the amount of the non-refundable Initial Franchise Fee for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
his Item.
ITEM 5. INITIAL FEES
You must pay us a non-refundable initial franchise fee (the "Initial Franchise Fee") of $75,000, which is due when the Franchise Agreement is signed by you and us.
You must also pay us or a provider designated by us a non-refundable initial marketing program membership fee (the "Initial Marketing Program Membership Fee") of $5,000, which is due when the Franchise Agreement is signed by you and us. Existing franchisees in good standing with us are not required to pay the Initial Marketing Program Membership Fee if their Franchise Agreement was signed before May 1, 2023 (and is still in effect), or, if they paid an Initial Marketing Program Membership Fee to us under their existing Franchise Agreement. However, existing franchisees in default under their previously signed Franchise Agreement are required to pay the Initial Marketing Program Membership Fee.
If you are a current franchisee and you, as an individual, or 50% or more of the owners of your corporation, partnership or limited liability company, enter into another Franchise Agreement for the development of an additional project, the non-refundable Initial Franchise Fee will be $5,000, if (a) the location of the additional project is within 100 miles of a project of yours that is under development in accordance with a then-existing Franchise Agreement with us, and, if applicable, (b) the additional project
is located within a state in which we have an effective franchise registration or franchise registration exemption.
Sometimes there are changes to the ownership of a franchisee business entity after the Franchise Agreement is signed. In these instances, under our current policies, (a) if you are a current franchisee and form a business entity to develop a new project, and the business entity is owned by at least 80% of the owners of the current franchisee entity and we consent to an additional owner(s), there is no Initial Franchise Fee, and (b) if more than 20% of the original ownership of your franchisee business entity is transferred to a third party, your entity will be required to pay us an amount equal to the then-applicable Initial Franchise Fee. In addition, we must consent to the transfer of the ownership interest to the third party.
**ITEM 6.
Source: Item 5 — INITIAL FEES (FDD pages 15–16)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the standard Initial Franchise Fee is $75,000. This fee is non-refundable and must be paid when the Franchise Agreement is signed by both the franchisee and Epcon Communities. This fee grants the franchisee the right to operate an Epcon Communities franchise.
However, the FDD outlines exceptions where the Initial Franchise Fee may be reduced to $5,000 or waived entirely. If a current franchisee in good standing enters into another Franchise Agreement for an additional project within 100 miles of an existing project under development, and within a state where Epcon Communities has an effective franchise registration or exemption, the Initial Franchise Fee is reduced to $5,000.
Additionally, the Initial Franchise Fee is waived if a current franchisee forms a business entity to develop a new project, provided that at least 80% of the owners of the new entity are also owners of the current franchisee entity, and Epcon Communities consents to any additional owners. Conversely, if more than 20% of the ownership of the franchisee business entity is transferred to a third party, the entity will be required to pay the then-applicable Initial Franchise Fee, and Epcon Communities must consent to the transfer.
In addition to the Initial Franchise Fee, a new franchisee must pay a $5,000 non-refundable Initial Marketing Program Membership Fee. However, existing franchisees in good standing whose Franchise Agreement was signed before May 1, 2023, or who have previously paid this fee, are not required to pay it again unless they are in default under their existing Franchise Agreement.