When does the Epcon Communities franchisee begin remitting payment for the Higharc Services?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
n.
Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
If, in strict accordance with the terms of the Franchise Agreement, Franchisee requests any change or modification to the Development System in connection
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are required to remit payment for Higharc Services at two different times, depending on the type of service rendered.
First, for the general use of Higharc Services, the franchisee must begin payments "commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project." The payment is to Epcon Communities in the amount of $1,500 for each unit, referred to as the "Technology Royalty." To ensure timely payment, the franchisee must provide Epcon Communities with a Settlement Statement or Settlement Disclosure Form, reflecting the Technology Royalty payment, no later than two days prior to the unit's closing.
Second, if the franchisee requests changes or modifications to the Development System plans to meet local zoning or building code requirements, and Epcon Communities approves these changes in writing, the franchisee is obligated to pay $200 per hour for Higharc's services related to these modifications. These payments are due within ten business days of the invoice date, with all time billed in minimum one-hour increments. This means that even if a modification takes only 30 minutes, the franchisee will be billed for a full hour. This payment structure ensures Epcon Communities is compensated for the technology services provided through Higharc.