factual

For the Epcon Communities operating lease, does the agreement provide for minimum lease payments?

Epcon_Communities Franchise · 2025 FDD

Answer from 2025 FDD Document

The Company leases office space under a non-cancellable operating lease. While the office space lease agreement provides for minimum lease payments, additional rental amounts are contingent upon utilities usage and proportionate taxes, insurance and similar costs.

Source: Item 23 — RECEIPTS (FDD pages 86–280)

What This Means (2025 FDD)

According to the 2025 Epcon Communities Franchise Disclosure Document, the company does lease office space under a non-cancellable operating lease. The lease agreement does provide for minimum lease payments. However, the total rental amount may fluctuate because additional rental amounts are contingent upon utilities usage and proportionate taxes, insurance, and similar costs.

For a prospective Epcon Communities franchisee, this means that while there is a base amount for the office space lease, the actual amount paid could vary based on usage and other external costs. This is a fairly standard practice in commercial leases, where tenants often bear responsibility for a portion of the building's operating expenses.

It is important for potential franchisees to carefully review the lease terms and understand how these additional costs are calculated and allocated. This will help in accurately budgeting for ongoing operational expenses. Franchisees should also inquire about historical utility costs and tax rates for the leased property to better estimate potential fluctuations in rental payments.

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.