When is the Liquidated Damages Fee due 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, the Liquidated Damages for Breach of Franchise Agreement is due immediately upon the occurrence of the breach. This fee is charged for each project developed in breach of Articles 10.3 and 14.3 of the Franchise Agreement.
The amount of the liquidated damages is 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%. This fee is payable directly to Epcon Communities.
For a prospective Epcon Communities franchisee, this means that any failure to adhere to the terms outlined in Articles 10.3 and 14.3 of the Franchise Agreement could result in an immediate charge based on a percentage of the project's value. It is important for franchisees to understand these articles within the Franchise Agreement to avoid incurring these liquidated damages.