What home design is the cost estimate for vertical construction based on in the Epcon Communities FDD?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The cost estimates shown in Item 7 assume that you are planning to complete one (1) project in a standard market area that will have thirty (30) detached dwelling Units (homes). The cost estimates for vertical construction are based on our most popular home design, a slab-on-grade Portico unit type. The low end of the estimated cost range is a Portico model home with no structural options and the high end of the estimated range is a Portico model home with many available structural options. For a project of this size, we specify the prototypical Large Pavilion as the only amenity in the project and have provided cost estimates for that structure.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the cost estimates for vertical construction are based on the Portico unit type, which is their most popular home design featuring a slab-on-grade foundation. The low end of the estimated cost range is for a Portico model home without any structural options, while the high end includes many available structural options. This information is relevant to the estimated initial investment for franchisees.
The FDD specifies that the estimates provided in Item 7 assume the franchisee is planning to complete a project in a standard market area with thirty detached dwelling units. For a project of this size, Epcon Communities specifies the prototypical Large Pavilion as the only amenity in the project and has provided cost estimates for that structure.
For the Model Home Unit and the first Unit offered for sale, the estimate assumes both are Portico Units, including all costs associated with constructing an "average," slab-on-grade home of approximately 1,776 square feet. The vertical construction cost ranges from $139 per square foot for a base unit with limited upgrades and no structural options to $193 per square foot for a unit with many upgrades and structural options. These costs encompass all hard costs, labor, and material expenses required for construction, such as footers, foundations, framing, utilities, interior finishes, and landscaping.