To whom is the Initial Franchise Fee payable for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Initial Franchise Fee | $75,000 | Lump Sum | Franchise Agreement Signing | Payable to Us |
| Initial Marketing Program Membership Fee (See Note 10.) | $5,000 | Lump Sum | Franchise Agreement Signing | Payable to us |
| Mortgage and Security Agreement Recording Fees and Administrative Fee (See Note 11.) | $300 to $1,200 | Lump Sum | Financing Closing or 15 Days of Invoicing | Payable to Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the initial franchise fee is payable to the franchisor, referred to as "Us" in the document. The initial franchise fee is $75,000. This fee is due in a lump sum when the Franchise Agreement is signed.
In addition to the initial franchise fee, Epcon Communities franchisees must also pay an Initial Marketing Program Membership Fee of $5,000, also payable to "us" (the franchisor) upon signing the Franchise Agreement. There is also a Mortgage and Security Agreement Recording Fees and Administrative Fee of $300 to $1,200 payable to "Us".
Understanding where these initial fees are directed is crucial for prospective franchisees as it clarifies the financial obligations to Epcon Communities versus third-party vendors. Franchisees should ensure they have sufficient capital to cover these upfront costs, as they are a prerequisite to commencing operations. Knowing that these fees are paid directly to the franchisor also allows franchisees to better understand the services and support they should expect to receive in return for these payments.