When must an Epcon Communities franchisee remit 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 make two types of payments related to Higharc Services. First, a "Technology Royalty" of $1,500 is due contemporaneously with the closing of the sale of each unit in the project. This means that as each home is sold and the transaction is finalized, Epcon Communities must receive $1,500 for the technology services associated with that unit. To ensure timely payment, the franchisee must provide a Settlement Statement or Settlement Disclosure Form to Epcon Communities no later than two days prior to the unit's closing, reflecting the Technology Royalty payment.
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, Higharc will make the modifications. In this case, the franchisee must pay Epcon Communities $200 per hour for Higharc's services. This payment is due within ten business days of the date of the invoice. Time for these services is billed in minimum increments of one hour.
In summary, the timing of payments for Higharc Services depends on the type of service provided. The Technology Royalty is tied to the closing of unit sales, while hourly fees for plan modifications are due after invoicing. Franchisees should be aware of these payment obligations and ensure they are factored into their project budgets and timelines.