What is the average location premium per lot on detached franchise closings for Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Location Premium Per Lot on Detached Franchise Closings | |
|---|---|
| Average | $ 22,200 |
| Median | $ 15,000 |
| Minimum | $ 2,000 |
| Maximum | $ 120,000 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 69–79)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the average location premium per lot on detached franchise closings is $22,200. This data is based on 402 total detached unit closings that reported a location premium across 53 projects from 26 franchisees. The FDD also indicates that the median location premium is $15,000, with a minimum of $2,000 and a maximum of $120,000.
Location premiums are additional costs assessed on certain building lots within a planned community, typically due to desirable features such as views or locations. These premiums can significantly impact the overall cost of a unit and, consequently, the potential profit for the franchisee. The fact that 140 unit closings were reported to have no lot location premium suggests that not all lots command this additional cost, and 4 Units did not have lot premium data available.
For a prospective Epcon Communities franchisee, understanding the prevalence and magnitude of location premiums is crucial for accurate financial forecasting. The difference between the average and median premiums ($22,200 vs. $15,000) suggests that some lots have substantially higher premiums, which could skew the average. Franchisees should analyze the specific characteristics of their market area and project locations to estimate potential location premiums accurately.
It is also important to note that the FDD specifies how these averages are calculated. Specifically, if a franchisee reported a lot location premium dollar amount of zero, this is not included in calculating the average lot location premium. Additionally, in cases where sales data was collected by searching county property records, it cannot be determined where those lots were assessed location premiums. Similarly, in cases where the sales data was provided in the form of a settlement statement, details regarding lot location premiums were not available. In those cases where lot location premium data is not available, those Unit closings are not included in calculating this average.