In the context of the Epcon Communities FDD, what constitutes a franchisee being 'in operation' during 2024?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 19 includes historical sales information regarding Epcon Communities projects that sold Units in projects in 2024. The information below is historical information from projects developed by our franchisees and our affiliates, Epcon, Epcon Indiana, Epcon Georgia and Epcon Carolinas. Projects developed by our affiliates, Epcon, Epcon Indiana, Epcon Georgia and Epcon Carolinas, are sometimes referred to in this Item 19 as "Epcon Corporate" projects. During 2024, there were 45 franchisees in operation out of a total of 74 franchisees in the Development System,1 and 23 Epcon Corporate owned outlets that were in operation. A franchisee is defined to be in operation in 2024 if they closed the sale of at least one Unit in 2024.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 69–79)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a franchisee is considered 'in operation' during 2024 if they closed the sale of at least one Unit in 2024. This definition is used in Item 19, which includes historical sales information regarding Epcon Communities projects.
Specifically, the FDD notes that during 2024, 45 out of 74 franchisees in the Development System were in operation, along with 23 Epcon Corporate owned outlets. This distinction is important because the financial performance representations in Item 19 are based on data from both franchisee-developed projects and projects developed by Epcon's affiliates.
For a prospective franchisee, understanding this definition is crucial for interpreting the financial performance data presented in Item 19. The data reflects the performance of franchisees who were actively selling units, providing a more relevant picture of potential financial outcomes. It's also important to note that franchisees may have multiple franchise agreements, so the number of franchisees in operation may not directly correlate with the total number of franchised locations.