When must the Initial Market Hold Fee be paid to Epcon Communities?

According to Epcon Communities' 2025 Franchise Disclosure Document, the Initial Market Hold Fee of $5,000 must be paid no later than the time of the franchisee's execution of the Market Hold Agreement. This fee is non-refundable. The Market Hold Agreement allows a franchisee to reserve or 'hold' a specific market area while deciding whether to enter into a Franchise Agreement and Market Area Agreement with Epcon Communities for developing a project in that reserved area.

This agreement grants the franchisee a period of twelve months from the effective date of the Market Hold Agreement, during which Epcon Communities will not develop or license a third party to develop a project using their Development System within the Reserved Market Area. This hold is subject to compliance with Section 5 of the agreement, which likely outlines specific conditions or procedures that must be followed.

For a prospective Epcon Communities franchisee, this means that securing a desired market area requires an upfront investment of $5,000. This fee ensures that the area is held exclusively for the franchisee for a limited time, allowing them to evaluate the market's potential without immediate competition from Epcon Communities or other franchisees. However, it's important to note that the fee is non-refundable, so careful consideration should be given before entering into the Market Hold Agreement.

It is also important to note that, at Franchisor's sole discretion, a franchisee may only obtain a reservation or "hold" on one proposed Market Area for each active Market Area that has a Project currently under development.