What is the payment trigger for Higharc Services for Epcon Communities franchisees?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee acknowledges that Franchisor may, in its sole discretion, suspend, limit or revoke a Franchisee's right to use the Higharc Services if Franchisor determines that Franchisee, its agents, employees or owners, have failed to comply with the requirements and obligations pertaining to the Higharc Services. Notwithstanding any such suspension, limitation or revocation described above, the obligations of Franchisee to pay the Technology Royalty under this Addendum will continue without reduction until such time as all amounts owed by Franchisee to Franchisor under the terms of this Addendum are indefeasibly paid in full.
In consideration for use of the Higharc Services, commencing with the date of execution of this Addendum, contemporaneously with the closing of the sale of each Unit in the Project, Franchisee shall remit (or have the escrow agent, attorney, or any other person conducting closings remit) a payment to Franchisor in an amount equal to One-Thousand Five Hundred No/100 Dollars ($1,500.00) (the "Technology Royalty"). No later than two days prior to a Unit's closing, a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Technology Royalty payment for such Unit, shall be provided to Franchisor.
If, in strict accordance with the terms of the Franchise Agreement, Franchisee requests any change or modification to the Development System in connection
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are required to pay a Technology Royalty for the use of Higharc Services. This royalty is triggered by the closing of the sale of each unit in the project. Contemporaneously with the closing of each unit sale, the franchisee must remit $1,500 to Epcon Communities Franchising, LLC.
To ensure proper payment, the franchisee is obligated to provide Epcon Communities with a Settlement Statement or Settlement Disclosure Form no later than two days prior to the unit's closing. This document must reflect the applicable Technology Royalty payment for that specific unit. This process ensures that Epcon Communities receives timely payment for the Higharc Services provided in connection with each unit sale.
Additionally, if a franchisee requests changes or modifications to the Development System plans to meet local zoning or building code requirements, and Epcon Communities approves these changes in writing, the franchisee will incur additional costs. These modifications will be made solely by Higharc, and the franchisee will be billed $200 per hour for Higharc's services. Payment for these services is due within ten business days of the invoice date, with all time billed in minimum increments of one hour.