How is the Liquidated Damages Fee for breach of the Franchise Agreement calculated for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Liquidated Damages For Breach of Franchise Agreement | The greater of (i) the estimated value of the project multiplied by 3.0%, or (ii) the actual completion value of the project multiplied by 3.0%. | Immediately upon occurrence of the breach. | Amounts are payable to us. This amount is chargeable for each project developed in breach of Articles 10.3 and 14.3 of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a franchisee may be charged liquidated damages for breaching the Franchise Agreement. This fee is applicable for each project developed in breach of Articles 10.3 and 14.3 of the Franchise Agreement.
The liquidated damages will be the greater of two calculations. The first calculation is the estimated value of the project multiplied by 3.0%. The second calculation is the actual completion value of the project multiplied by 3.0%.
The liquidated damages are payable to Epcon Communities immediately upon the occurrence of the breach. This fee is in addition to any other remedies that Epcon Communities may have under the Franchise Agreement or applicable law.