When must an Epcon Communities franchisee obtain the home warranty plan for each Unit?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain the home warranty plan for each Unit prior to closing on the sale of the Unit, including the collection of any information and documentation needed by the issuer of the home warranty plan.
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 required to secure a home warranty plan for each unit before closing the sale of that unit. This includes gathering all necessary information and documentation required by the home warranty plan provider. The home warranty covers defects and deficiencies in workmanship for one year and structural defects for ten years.
The cost of the home warranty is estimated to range from $925 to $1,500 per unit. Additionally, the third-party provider may require a one-time enrollment fee for each project, estimated at $95. This warranty must be purchased from a third-party provider designated by Epcon Communities, and franchisees must meet the underwriting requirements set by that provider.
This requirement ensures that buyers of Epcon Communities homes are protected against potential defects, providing them with peace of mind and safeguarding the brand's reputation. For prospective franchisees, it's crucial to factor in these warranty costs and enrollment fees when projecting expenses for each project. Meeting the underwriting requirements of the third-party provider is also essential to ensure compliance and avoid any delays in closing the sale of units.