Does the Epcon Communities estimated additional start-up expenses include an allowance for an owner's distribution or employee salaries?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
These figures are estimates of additional start-up expenses that you may incur during the initial investment period described above, such as organization costs, entity formation costs, attorney or other professional fees, and costs for the search of land or developed lots upon which to build your project. If you are unable to procure financing, land, zoning or developed lots, you may not be able to carry expenses associated with those to another project. It is impossible to project exact expenses for your specific area or project, because the expenses are related to a range of factors which vary from project to project. The actual amount of additional funds that you will need depends on a variety of factors, including the time of year when you start your project, your own management skill, economic conditions, competition in your area and other factors. The estimate does not include any allowance for an owner's distribution or salaries for your employees.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to the 2025 Epcon Communities FDD, the estimated additional start-up expenses do not include any allowance for an owner's distribution or salaries for employees. These additional start-up expenses may include costs such as organization costs, entity formation costs, attorney or other professional fees, and costs for the search of land or developed lots upon which to build a project.
It is important to note that the exact expenses for a specific area or project are impossible to project, as they are related to a range of factors that vary from project to project. These factors include the time of year when the project starts, the franchisee's management skill, economic conditions, and competition in the area.
Prospective franchisees should carefully consider their personal financial needs and living expenses when planning their initial investment. It is essential to have sufficient capital to cover both the business expenses and personal needs during the start-up phase, as the FDD explicitly states that the estimated additional start-up expenses do not account for these costs.