What is the Epcon Communities franchisee's obligation if they fail to make payments when due?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
o be, and does not constitute, an analysis of Franchisee's compliance with applicable federal, state, and local laws, regulations, ordinances, and codes. Any evaluation or inspection is to protect Franchisor's interests in the Development System and the Marks and not for the purpose of establishing any control or duty to take control over those matters that are reserved to Franchisee.
- 5.4 If Franchisee fails to remit to Franchisor when due any payment required under the terms of this Agreement, Franchisee agrees to pay to Franchisor all of Franchisor's costs of collection of the amount(s) of such outstanding payments, including reasonable attorney's fees and disbursements, and interest on the unpaid amounts at the lesser of eighteen percent (18%) per annum or the highest rate statutorily permissible, for the period commencing on the date such amount(s) were due to be paid to F
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if a franchisee fails to remit payments when due, they must cover Epcon Communities' costs of collection. These costs include reasonable attorney's fees and disbursements.
Additionally, the franchisee is obligated to pay interest on the unpaid amounts. This interest accrues from the date the payment was originally due until the date Epcon Communities receives the funds. The interest rate is the lesser of 18% per annum or the highest rate legally permissible.
It's important to note that for franchisees governed by Minnesota law, Minnesota Statute 604.113 limits the amount that Epcon Communities may charge franchisees who do not have sufficient funds for payment that is due and owing to Epcon Communities at $30 per occurrence.