Does Epcon Communities have an obligation to locate a site or negotiate the purchase of a site for franchisees?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Location of Your Project
We do not have an obligation to locate a site or negotiate the purchase of a site for you. We do not own sites that we lease or sell to you. You must identify the site for your project. (Franchise Agreement, Section 3.3). While we do not select a site for you or assist you in the selection of your site, we must approve your site. (Franchise Agreement, Section 3.3). Factors that we consider when approving your project site include the visibility and accessibility of the site, the surrounding neighborhood, site attributes (such as trees, lakes and ravines), proximity of shopping areas, medical services, and recreational areas (such as parks, golf courses and tennis courts). We do not assist you in conforming the site to local ordinances and building codes and/or obtaining any required permits. We are not responsible for constructing, remodeling or decorating the improvements on your site. If you and us cannot agree on a location for your project or you have not started construction of your project within 3 years after the Franchise Agreement is signed, we may terminate the Franchise Agreement (Franchise Agreement, Section 13.4.2).
Time Before Opening
The typical length of time between the signing of the Franchise Agreement and the beginning of construction of your project and/or beginning of Unit sales is generally 10 to 24 months. Factors affecting the length of time include whether you are purchasing developed lots or raw land, site identification and entitlement, obtaining financing, obtaining any necessary zoning approvals and governmental permits, soil and environmental testing, and weather conditions in the locale of your site. If you have not commenced construction activity on your project within 36 months after you sign the Franchise Agreement, we may terminate your Franchise Agreement. (Franchise Agreement, Section 13.4.2).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 39–48)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Epcon Communities does not have any obligation to locate a site or negotiate the purchase of a site for franchisees. The franchisee is responsible for identifying the site for their project. However, Epcon Communities must approve the site that the franchisee selects.
Factors that Epcon Communities considers when approving a project site include the site's visibility and accessibility, the surrounding neighborhood, site attributes like trees, lakes, and ravines, and the proximity of shopping areas, medical services, and recreational areas such as parks, golf courses, and tennis courts. Epcon Communities does not assist franchisees in conforming the site to local ordinances and building codes or obtaining required permits, nor are they responsible for constructing, remodeling, or decorating the improvements on the site.
If the franchisee and Epcon Communities cannot agree on a location for the project, or if construction has not started within three years after signing the Franchise Agreement, Epcon Communities has the right to terminate the Franchise Agreement. The typical time between signing the Franchise Agreement and starting construction or unit sales is generally 10 to 24 months, depending on factors like purchasing developed lots or raw land, site identification and entitlement, financing, zoning approvals, governmental permits, soil and environmental testing, and weather conditions.