What is the minimum Point of Closing Royalty Payment for each Unit in an Epcon Communities project?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
the "Applicable Percentage") multiplied by the Gross Sales Price of such Unit as provided in the applicable Settlement Statement or the total of the "Sale Price of the Property" and the "Sale Price of any personal property included in sale" in the Settlement Disclosure Form, or such lower amount, if applicable as provided in Section
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the minimum Point of Closing Royalty Payment for each unit is $3,000. This means that for every unit sold within an Epcon Communities project, the franchisee must pay at least $3,000 to Epcon Communities as a royalty, regardless of any potential volume-based reductions or caps on the calculation of these royalty payments.
This minimum payment ensures that Epcon Communities receives a baseline royalty income from each unit sold, irrespective of factors like the franchisee's sales volume or any discretionary caps the franchisor might implement. This provision offers a degree of financial security for Epcon Communities.
For a prospective franchisee, this minimum royalty payment is a crucial factor in their financial planning. It represents a fixed cost per unit sold and must be factored into the pricing and profitability calculations for each project. Franchisees should be aware that even if they qualify for volume-based reductions or if Epcon Communities places a cap on royalty calculations, the $3,000 minimum still applies, potentially impacting their profit margins on individual unit sales.