factual

When is the Marketing Program Fee due for an Epcon Communities franchise?

Epcon_Communities Franchise · 2025 FDD

Answer from 2025 FDD Document

elf (see General Note I and General Note II below).

Type of Expenditure Amount Method of Payment When Due To Whom Payment Is To Be Made
Land Purchase $700,000 to As Arranged As Arranged Land Seller
(See Note 1 and N

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)

What This Means (2025 FDD)

According to the 2025 Epcon Communities FDD, the Marketing Program Fee is due in installments of $3,125, payable monthly by the 15th day of each month. However, the start date for these payments is determined by whichever comes first: the 19th month after signing the Franchise Agreement, the month after the project is listed on the Epcon Communities website, or the 15th day of the month following the first closing on a unit sale within the project.

This means that while the fee is paid monthly, the obligation to begin paying it can be triggered by different milestones in the development and marketing of the Epcon Communities project. The assumption is that enrollment on the Epcon Communities website will occur approximately five months before the model home opens, which is projected to be in the 24th month after signing the Franchise Agreement.

For a prospective Epcon Communities franchisee, it's important to note that these payments are not refundable once made to Epcon Marketing. Therefore, franchisees should carefully plan their project timelines and marketing strategies to align with these payment triggers. Understanding these triggers is crucial for managing cash flow and ensuring timely compliance with the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.