How does the initial marketing program membership fee for
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement is signed by you and us.
You must also pay us or a provider designated by us a non-refundable initial marketing program membership fee (the "Initial Marketing Program Membership Fee") of $5,000, which is due when the Franchise Agreement is signed by you and us. Existing franchisees in good standing with us are not required to pay the Initial Marketing Program Membership Fee if their Franchise Agreement was signed before May 1, 2023 (and is still in effect), or, if they paid an Initial Marketing Program Membership Fee to us under their existing Franchise Agreement. However, existing franchisees in default under their previously signed Franchise Agreement are required to pay the Initial Marketing Program Membership Fee.
If you are a current franchisee and you, as an individual, or 50% or more of the owners of your corporation, partnership or limited liability company, enter into another Franchise Agreement for the development of an additional project, the non-refundable Initial Franchise Fee will be $5,000, if (a) the location of the additional project is within 100 miles of a project of yours that is under development in accordance with a then-existing Franchise Agreement with us, and, if applicable, (b) the additional project
is located within a state in which we have an effective franchise registration or franchise registration exemption.
Sometimes there are changes to the ownership of a franchisee business entity after the Franchise Agreement is signed. In these instances, under our current policies, (a) if you are a current franchisee and form a business entity to develop a new project, and the business entity is owned by at least 80% of the owners of the current franchisee entity and we consent to an additional owner(s), there is no Initial Franchise Fee, and (b) if more than 20% of the original ownership of your franchisee business entity is transferred to a third party, your entity will be required to pay us an amount equal to the then-applicable Initial Franchise Fee. In addition, we must consent to the transfer of the ownership interest to the third party.
ITEM 6. OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Homeowner Survey Fees | Currently there is a one-time fee of $200 and a per survey fee of $49. The provider of the surveys may change the amount of these fees from time to time. | Immediately upon billing from third-party provider. | Amounts are payable to survey provider. See Note 6. |
| Securities Offering Review Fee | Amount varies. We estimate this fee will range from $0 to $1,000. | Immediately upon billing. | If you desire to make a public securities offering of your stock, you must pay us an amount equal to our expenses to review and comment on the proposed offering documents. |
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, new franchisees must pay an initial marketing program membership fee of $5,000. This fee is non-refundable and is due when the Franchise Agreement is signed by both the franchisee and Epcon Communities. The purpose of this fee is to grant the franchisee access to web-based resources related to the Development System and marketing assets created for use across the franchise system, accessible through an intranet website.
Existing Epcon Communities franchisees in good standing, whose Franchise Agreement was signed before May 1, 2023, are not required to pay this fee if their original agreement is still in effect or if they previously paid the fee under their existing agreement. However, franchisees who are in default under their previously signed Franchise Agreement are required to pay the Initial Marketing Program Membership Fee.
Epcon Communities, through Epcon Marketing, manages the advertising plans and materials associated with these fees. These funds may be used to promote the projects of franchisees and Epcon Communities' affiliates at the local, regional, or national level, using any medium deemed appropriate. The expenditure of these fees is approved by Epcon Marketing's trustees, and the finances are administered by Epcon Communities. The marketing fund is audited, and financial statements are available to franchisees upon request. Any unspent fees are carried over to the next calendar year.
The FDD also specifies that franchisees must pay a Marketing Program Fee of $625 per month for each project. This fee begins on the earlier of (a) the 15th day of the 19th month after signing the Franchise Agreement, (b) the 15th day of the month following the inclusion of the project on the Epcon Communities website, or (c) the 15th day of the month following the first closing on a unit sale within the project. This monthly fee continues until the project is completed.