What happened to the capitalized software with a net book value of $108,425 at Epcon Communities in 2024?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| PO Box 746 Bismarck, ND 58502 701-471-6935 | Debra Eiseman | Project Location TBD – 12/12/2024 | |---|---|---| | OHIO | | | | Artisan Communities, LLC 8055-C Corporate Boulevard Plain City, OH 43064 614-330-2327 | Daniel Armbruster Seth Barritt | Beavercreek, OH – 2/28/2022 | | The Courtyards at Deer Run, LLC 8 Medical Drive Chillicothe, OH 45601 740-701-1810 | Kevin E. Norman Randy Detillion Courtney Ruppert | Chillicothe, OH – 7/22/2019 | | Twentieth Century Construction Co. | Tom Riebe | Cleveland, OH – 6/17/2020 | | 2167 Mentor Avenue | Jeff Smul | | | Painesville Township, OH 44077 | Allison Riebe Moore | | | 440.354.5602 | Chris Mulchin | | | Gables Management Co., LLC | Michael Wojno | Fairlawn, OH – 9/16/2020 | | 3200 West Market Street, Suite 104 | | | | Akron, OH 44333 | | | | 330-524-4394 | | | | R.E.M Developments, LLC 3982 Powell Road, Suite 108 Powell, OH 43065 614-203-1492 | Chris McCray Dennis Grech | Lancaster, OH – 12/17/2020 | | Alloway Real Estate Holdings, LLC | Robert Alloway | Marysville, OH – 10/19/20 | | 22812 Pelomar Lane | | | | Marysville, Ohio 43040 | | | | 937-578-3937 | | | | New Leaf Cobblestone, LLC | Michael Wojno | Montville, OH – 12/4/2024 | | 3200 West Market Street, Suite 104 | | | | Akron, OH 44333 | | | | 330-524-4394 | | | | Charis Homes | Glenna Wilson | North Canton, OH – 12/9/2020 | | 801 South Main Street | | | | North Canton, OH 44720 | | | | 330-833-4527 | | | | Perrino Lifestyles, LLC | Pat Perrino | Sheffield, OH – 10/21/2021 | | 7976 Mayfield Road | | | | Chesterland, OH 44026 | | | | 440-487-4021 | | | | Elysian Enterprises, LLC | Morgan G. Knapp | Sunbury, OH – 2/20/2023 | | 7986 Luckstone Drive | | | | Dublin, OH 43017 | | | | 614-746-3813 | | | | Foundation Development Group, LLC 2470 E. Main St., Ste. 2 Columbus, OH 43209 614-299-4540 | David J. Labus Carl Fankhauser | West Chester, OH – 12/08/2019 | | PENNSYLVANIA | | | | Weaver Master Builders, Inc. P.O. Box 449 361 Mars Valencia Road Mars, PA 16046 724-625-7800 | William J. Weaver Bonnie Weaver | Allison Park, PA – 2/1/2024 | Depreciation expense is recorded using the straight-line method for the years ended December 31, 2024 and 2023 totaling $49,634 and $69,822, respectively
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, capitalized software with a net book value of $108,425 was transferred to a related party under common control in 2024. The FDD states that equal consideration is expected to be exchanged in 2025. Epcon Communities has recorded a receivable from the related party within due from related parties on the Consolidated Balance Sheet.
For a prospective franchisee, this indicates that Epcon Communities engages in transactions with related parties, which is not uncommon in franchising. The transfer of capitalized software suggests that the company is actively managing its assets and potentially streamlining operations within its network of related entities.
However, it's important to note that the consideration for the software transfer was not yet received as of the end of 2024, but is expected in 2025. A potential franchisee should inquire about the nature of the 'equal consideration' to be exchanged and ensure that such transactions do not negatively impact the financial stability or operational efficiency of Epcon Communities.