What costs is an Epcon Communities franchisee responsible for if they fail to remit payments on time?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 If Franchisee fails to remit to Franchisor when due any payment required under the terms of this Agreement, Franchisee agrees to pay to Franchisor all of Franchisor's costs of collection of the amount(s) of such outstanding payments, including reasonable attorney's fees and disbursements, and interest on the unpaid amounts at the lesser of eighteen percent (18%) per annum or the highest rate statutorily permissible, for the period commencing on the date such amount(s) were due to be paid to Franchisor and ending on the date such amount(s) are received by Franchisor in finally collectible funds.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, they are responsible for covering Epcon Communities' collection costs. These costs include reasonable attorney's fees and disbursements.
Additionally, the franchisee must pay interest on the outstanding amount. The interest rate will be the lesser of 18% per annum or the highest rate legally permissible. This interest accrues from the original due date until Epcon Communities receives the full payment in collectible funds.
This late payment clause is fairly standard in franchising, designed to protect the franchisor from financial losses and incentivize timely payments. Prospective Epcon Communities franchisees should be aware of these potential costs and ensure they have sufficient financial planning to avoid late payments.