To whom does an Epcon Communities franchisee pay the Marketing Program Fee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
rticular year.
Note 3: Marketing Program Fee: You must pay us, Epcon Marketing or another entity designated by us, a marketing program fee ("Marketing Program Fee") in the amount of $625 per month for each of your projects. However, if you have more than one project under construction and you are actively marketing Units for sale in all of those projects, we currently discount the amount of the Marketing Program Fee that you are required to pay. Currently, a franchisee who meets these requirements will pay Marketing Program Fees per month in the following amounts:
| Projects Under Development During the Month | Monthly Marketing Program Fee Applicable to Projects For That Month |
|---|---|
| First and Second Project | $625 each Project |
| Third through Fifth Project | $500 each Project |
| Sixth Project and Each | $375 each Project |
| Additional Project |
We may discontinue the discount of the Marketing Program Fee at any time. When estimating the amount for the Marketing Program Fee in this Item 6, it was assumed that you would have only one project.
The first Marketing Program Fee payment is due on the 15th day of each month beginning the earlier of (a) the 18th month after the month in which the Franchise Agreement was signed by you and us, or (b) the month immediately after the month in which you request that we include your Epcon community on our web site, or (c) the fifteenth day of the month immediately following the month of your first closing on a sale of a Unit within your Project Your obligation to pay the Market Program Fee continues until the last Unit in your project is sold. We have the right to withdraw the Marketing Program Fee by EFT.
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the Marketing Program Fee is paid to Epcon Communities, Epcon Marketing, or another entity that Epcon Communities designates. The standard Marketing Program Fee is $625 per month for each project. However, Epcon Communities offers a discount if a franchisee has multiple projects under construction and is actively marketing units for sale in all of those projects.
For franchisees with multiple projects, the monthly Marketing Program Fees are structured as follows: $625 each for the first and second project, $500 each for the third through fifth project, and $375 each for the sixth and each additional project. This tiered structure incentivizes franchisees to develop and market multiple projects simultaneously.
The first Marketing Program Fee payment is due on the 15th day of each month, starting from the earliest of three conditions: (a) the 18th month after the franchise agreement is signed, (b) the month after the franchisee requests their Epcon community be included on Epcon Communities' website, or (c) the fifteenth day of the month following the first closing on a unit sale within the project. The obligation to pay this fee continues until the last unit in the project is sold. Epcon Communities also has the right to withdraw the Marketing Program Fee via Electronic Funds Transfer (EFT).
Epcon Communities retains the right to increase the monthly Marketing Program Fee from year to year, but any increase will not exceed 120% of the monthly fee paid by the franchisee during the previous calendar year. Franchisees who signed agreements that differ from the standard Franchise Agreement might not be required to pay the Marketing Program Fee or may pay a lesser amount. However, if these franchisees want to develop additional projects, they must sign an amendment obligating them to pay the Marketing Program Fee.