Does Epcon Communities currently require franchisees to participate in the rebate program for purchases from designated or approved suppliers?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Rebate Program
We have the right to require you to participate in a program that provides a rebate to you for purchases that you make of certain items from certain designated or approved suppliers. We do not currently require you to participate in this rebate program, but you may participate, if you would like. As disclosed in Item 6, we charge you a fee for our administration of this rebate program.
Purchase Arrangements and Special Pricing
Occasionally, we may negotiate purchase arrangements and special pricing with suppliers for the benefit of our entire Development System using the potential combined purchasing power of all of our franchisees and affiliates. For example, we periodically arrange for printing of sales brochures on a group basis to lower the per item cost. Other examples of products and services for which suppliers have granted special prices for groups using the Development System include advertising services, appliances, cabinets, floor coverings, faucets, miscellaneous home improvement products, heating, ventilating and air conditioning systems, lumber, paint, porches, project site analysis services, frames and windows. You are not required to participate in group purchases. We do not receive a payment for these purchases or receive products at a lower price than you will pay. We have not established and do not participate in any purchasing or distribution cooperatives.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–35)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are not currently required to participate in the rebate program. Epcon Communities retains the right to mandate participation in the future. This rebate program would provide franchisees with rebates on purchases of specific items from designated or approved suppliers. While not mandatory now, franchisees have the option to participate if they choose.
Item 6 of the FDD discloses that Epcon Communities charges a fee for administering this rebate program. This implies that while franchisees may receive rebates on certain purchases, they will also incur an administrative fee for the program's management.
Epcon Communities also negotiates purchase arrangements and special pricing with suppliers for the benefit of the entire Development System. Franchisees are not required to participate in these group purchases, and Epcon Communities does not receive payments or lower prices from these arrangements.