From how many Epcon Communities franchisees was the detached unit settlement price data collected?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
The data used to calculate the information presented below is from sales data for Units being sold in 57 projects that were built by franchisees for detached Units. This data is collected each month in the form of a monthly closing report, either directly from the franchisee or as obtained by searching county property records where the project is located. Twenty-seven (27) franchisees2 reported closing data in 2024. We have reported data for 546 total detached Unit closings across 57 projects from 27 franchisees and used that data for purposes of preparing this Item 19. No data from franchisees was excluded from Item 19 as a result of their termination or as a result of the closure of their franchised businesses during their first year of operation.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 69–79)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the data used to calculate the information presented in Item 19 is based on sales data for units sold in 57 projects that were built by franchisees for detached units. This data was collected each month in the form of a monthly closing report, either directly from the franchisee or by searching county property records where the project is located. In 2024, 27 franchisees reported closing data. The report includes data for 546 total detached unit closings across 57 projects from these 27 franchisees, which was used to prepare Item 19.
This means that the financial performance representations regarding detached unit settlement prices are based on the actual sales data reported by a subset of Epcon Communities franchisees. Prospective franchisees can gain insight into potential revenue based on the performance of existing franchisees. However, the FDD also states that individual results may differ, and there is no assurance that new franchisees will achieve the same sales figures.
It is important to note that the data is collected on a per-project basis rather than by franchisee. This means that if a franchisee has multiple projects, each project's data is considered separately. Additionally, the settlement price is defined as the gross sales price as provided in the settlement statement or closing disclosure, or the total of the sale price of the property and any personal property included in the sale. This standardized definition ensures consistency in the data collected and reported.
Prospective franchisees should consider these factors when reviewing the financial performance representations. While the data provides a valuable benchmark, individual results will vary based on factors such as location, market conditions, and the franchisee's management capabilities. It is advisable to conduct thorough due diligence and seek professional advice before making any investment decisions.