What is the estimated cost range per Unit for the home warranty that Epcon Communities requires?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
the survey reports, which are intended to communicate to you areas in which you need to improve.
Home Warranty
We can require you to participate in a home warranty program that requires you to purchase insurance for the Units you sell in your project to cover defects and deficiencies in workmanship for one year and structural defects and deficiencies for ten years. You must purchase the home warranty from a third-party provider designated by us. You must meet the underwriting requirements established from time to time by the provider. In addition to the cost of the home warranty for each Unit, which is estimated to range from $925 to $1,500 per Unit, you may be required by the third-party provider to pay a one-time enrollment fee for each of your Projects. We estimate the enrollment fee to be $95. You must obtain the home warranty plan for each Unit prior to closing on the sale of
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 may be required to participate in a home warranty program. This program necessitates purchasing insurance for each Unit sold within their project. This insurance covers defects and deficiencies in workmanship for one year and structural defects and deficiencies for ten years. The home warranty must be obtained from a third-party provider designated by Epcon Communities, and franchisees must adhere to the provider's underwriting requirements.
The estimated cost for the home warranty ranges from $925 to $1,500 per Unit. In addition to this per-unit cost, the third-party provider may require a one-time enrollment fee for each project, estimated at $95. It is mandatory to secure the home warranty plan for each Unit before closing the sale, including gathering all necessary information and documentation required by the warranty plan issuer.
This requirement ensures that homeowners have protection against potential construction defects, which can enhance customer satisfaction and protect the Epcon Communities brand reputation. However, it also represents a significant cost for the franchisee, impacting the overall profitability of each project. Franchisees need to factor in these warranty costs when pricing their units and managing their project budgets. The obligation to use a designated third-party provider also limits the franchisee's ability to shop around for potentially lower-cost alternatives.