How does an Epcon Communities franchisee obtain a partial release of the mortgage?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article or Section in Mortgage | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Paragraph E (1) and (2) | We will terminate the mortgage entirely upon payment of all sums secured by the Mortgage and performance of all of obligations under the Mortgage. We will provide partial release of mortgage upon payment of applicable percent of sales price of each Unit. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities's 2025 Franchise Disclosure Document, a franchisee can obtain a partial release of the mortgage by paying the applicable percentage of the sales price for each individual unit. This provision is outlined under the terms for termination by the franchisee, detailed in Paragraph E (1) and (2) of the mortgage agreement.
This means that as an Epcon Communities franchisee develops and sells individual units within a project, a portion of the mortgage can be released for each unit sold. This allows the franchisee to manage their financial obligations in alignment with their sales revenue, rather than being tied to the entire mortgage until the whole project is completed and sold. The specific percentage of the sales price required for the partial release is not specified in this section, so a prospective franchisee should clarify this with Epcon Communities.
This type of arrangement is common in real estate development franchises, as it provides flexibility and reduces the financial burden on the franchisee. It is important for potential franchisees to understand the exact percentage required for the release, as this will directly impact their cash flow and profitability for each unit sold. Understanding the terms of the mortgage and the release conditions is a crucial part of assessing the financial viability of an Epcon Communities franchise.