Is an Epcon Communities franchisee required to participate in group purchases negotiated by the franchisor?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Occasionally, we may negotiate purchase arrangements and special pricing with suppliers for the benefit of our entire Development System using the potential combined purchasing power of all of our franchisees and affiliates. For example, we periodically arrange for printing of sales brochures on a group basis to lower the per item cost. Other examples of products and services for which suppliers have granted special prices for groups using the Development System include advertising services, appliances, cabinets, floor coverings, faucets, miscellaneous home improvement products, heating, ventilating and air conditioning systems, lumber, paint, porches, project site analysis services, frames and windows. You are not required to participate in group purchases. We do not receive a payment for these purchases or receive products at a lower price than you will pay. We have not established and do not participate in any purchasing or distribution cooperatives.
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 not required to participate in group purchases negotiated by the franchisor. Epcon Communities may occasionally negotiate purchase arrangements and special pricing with suppliers for the benefit of the entire Development System, leveraging the combined purchasing power of all franchisees and affiliates.
These arrangements can include items such as sales brochures, advertising services, appliances, cabinets, floor coverings, faucets, home improvement products, HVAC systems, lumber, paint, porches, project site analysis services, frames, and windows. While Epcon Communities facilitates these group purchasing opportunities, franchisees are not obligated to participate.
Epcon Communities does not receive payments or lower prices on these purchases compared to what franchisees pay. The company also does not participate in any purchasing or distribution cooperatives. This provides franchisees with the flexibility to source goods and services independently if they find better deals or prefer specific suppliers, while still having the option to benefit from pre-negotiated group pricing when advantageous.