What is the estimated one-time enrollment fee that the third-party provider may require for each Epcon Communities project?
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, purchasing insurance for Units sold to cover workmanship defects for one year and structural defects for ten years. This warranty must be obtained from an Epcon Communities-designated third-party provider. In addition to the cost of the home warranty for each unit, the third-party provider may require a one-time enrollment fee for each project. Epcon Communities estimates this enrollment fee to be $95.
This enrollment fee is separate from the cost of the home warranty itself, which is estimated to range from $925 to $1,500 per Unit. The franchisee must secure the home warranty plan for each Unit before closing the sale, including gathering all necessary information and documentation required by the warranty issuer. This requirement ensures that each homebuyer receives the protection of the warranty from the moment they take ownership.
The relatively low enrollment fee of $95, compared to the overall cost of the home warranty, suggests it is likely an administrative charge to set up the project within the third-party provider's system. While seemingly minor, this fee adds to the overall cost of each project and should be factored into the franchisee's budget. Failing to account for such fees could lead to underestimation of project expenses and potential financial strain.
Prospective Epcon Communities franchisees should confirm with the franchisor and current franchisees whether this $95 enrollment fee is consistently applied or if it varies based on the third-party provider or project size. Understanding the specific terms and conditions of the home warranty program, including all associated fees, is crucial for accurate financial planning and successful project execution.