What is the condition for the Epcon Communities franchisee to remit payment for the Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
n.
Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
If, in strict accordance with the terms of the Franchise Agreement, Franchisee requests any change or modification to the Development System in connection
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 FDD, an Epcon Communities franchisee must remit payment for the Higharc Services contemporaneously with the closing of the sale of each unit in the project. The franchisee must remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Epcon Communities in the amount of $1,500.00, which is referred to as the "Technology Royalty".
Furthermore, the FDD states that the franchisee must provide Epcon Communities with a Settlement Statement or Settlement Disclosure Form no later than two days prior to a unit's closing. This form must reflect the applicable Technology Royalty payment for such unit.
In the event that the franchisee requests any changes or modifications to the Development System in connection with the Plans to satisfy local zoning and/or building code requirements, and Epcon Communities provides prior written consent to such changes or modifications, the franchisee will be obligated to pay Epcon Communities $200.00 per hour for services performed by Higharc, or its designees, with respect to such changes or modifications to the Plans. This payment is due within ten business days of the invoice date, and all time for services rendered will be billed in minimum increments of one hour.