When is the Minimum Monthly Royalty payment due for an Epcon Communities franchise?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
se fees and payments are nonrefundable.
Note 1: Minimum Monthly Royalty: Each month that your project is under development, you must pay us a minimum monthly royalty (the "Minimum Monthly Royalty"). A project is considered under development from the date that you are required to pay the Minimum Monthly Royalty until the date your project is completed or your right to use the Development System under your Market Area Agreement or Initial Market Area Agreement is terminated by us, whichever occurs first. You must pay us the Minimum Monthly Royalty on the 15th day of each month, beginning the earlier of (a) the 37th month after the month in which the Franchise Agreement is signed by you and us, or (b) the month immediately after the month in which you close on the first sale of a Unit in your project. We may withdraw the Minimum Monthly Royalty from your bank account by electronic funds transfer ("EFT") or require you to pay the Minimum Monthly Royalty to us in some other manner. The amount of the Minimum Monthly Royalty is $2,000 for any month in which you did not close on the sale of a Unit in the preceding month.
At the end of each calendar year during the term of your Franchise Agreement, we will review the Minimum Monthly Royalty payments and Point of Closing Royalty Payments made by you in that calendar year. If you have paid us more than $24,000 in Point of Closing Royalty Payments in that calendar year, and you are not in default under your agreements with us, we will refund to you any Minimum Monthly Royalty payments paid by you in that calendar year. If you violate the terms of your Franchise Agreement relating to transfer of your franchise or ownership interest of your business entity, you will not be eligible for any r
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities's 2025 Franchise Disclosure Document, the Minimum Monthly Royalty payment is due on the 15th day of each month. This payment obligation begins the earlier of two conditions: either 37 months after the franchise agreement is signed, or the month immediately following the first unit sale within the project. The Minimum Monthly Royalty is $2,000 for any month in which the franchisee did not close on the sale of a unit in the preceding month.
This Minimum Monthly Royalty is applicable while the project is under development, starting from when the payment is required until the project is completed or the Development System rights are terminated. Epcon Communities may collect this royalty through electronic funds transfer (EFT) or another payment method.
At the end of each calendar year, Epcon Communities reviews the Minimum Monthly Royalty and Point of Closing Royalty Payments. If a franchisee has paid more than $24,000 in Point of Closing Royalty Payments during the year and is not in default, they are eligible for a refund of the Minimum Monthly Royalty payments made that year. However, violating the franchise agreement terms related to franchise transfer or ownership interest will disqualify the franchisee from receiving this refund.