What professional assistance is required for an Epcon Communities franchisee regarding legal and architectural compliance?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Epcon Communities business and project are subject to numerous laws and governmental regulations that apply to businesses generally. In addition, you must comply with a variety of federal, state and/or local laws and regulations concerning zoning and building codes, licensing requirements for contractors, property managers and real estate salespersons, the formation and management of condominium and homeowner associations, occupational health and safety on the construction site, housing finance, the federal Interstate Land Sales Full Disclosure Act, equal housing laws, the Fair Housing Act and the Americans with Disabilities Act, as well as the Accessibility Guidelines promulgated under each of these laws. Before you purchase an Epcon Communities franchise, we suggest that you check on the existence and the requirements of these laws and regulations in your area. We do not warrant to you that the architectural plans, specifications, condominium association materials and site plan samples provided as part of our Development System will comply with the laws and regulations applicable in the state and local governmental jurisdictions in which you decide to locate your project. You will be required to engage a local architect and legal counsel to assist you in determining which state and local government agencies are involved in regulating real estate development activity in your area and in making any modifications to the architectural plans, specifications, sample condominium association materials and site plan samples that are necessary to permit your project to be in compliance with all applicable laws and regulations. You must provide us with a letter from your architect detailing all of the changes made to the architectural plans, if any. If you are unable to obtain permits and approvals from governmental authorities regarding a particular project site within thirty-six months after signing the Franchise Agreement, you may terminate your Franchise Agreement if you provide timely notice to us of your desire to terminate the agreement and you pay us a termination fee. If governmental authorities require you to make modifications to the plans to gain approval or obtain a permit, you must comply with these requirements in order to move ahead with your project.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, franchisees are responsible for ensuring their projects comply with all applicable laws and regulations. Epcon Communities does not guarantee that the architectural plans, specifications, condominium association materials, and site plan samples they provide will meet the specific requirements of state and local jurisdictions.
Therefore, Epcon Communities requires franchisees to engage both a local architect and legal counsel. The architect's role is to modify the provided architectural plans and specifications as necessary to comply with local building codes and regulations. Franchisees must also provide Epcon Communities with a letter from their architect detailing any changes made to the architectural plans. Legal counsel will assist in navigating the various state and local government agencies involved in regulating real estate development in the franchisee's area.
This requirement ensures that each Epcon Communities project adheres to all legal and regulatory standards, but it also means that franchisees must factor in the costs of hiring these professionals. The FDD also states that if a franchisee is unable to obtain the necessary permits and approvals from governmental authorities within thirty-six months of signing the Franchise Agreement, the franchisee has the option to terminate the agreement, provided they give timely notice and pay a termination fee to Epcon Communities. This highlights the importance of securing competent legal and architectural assistance to navigate the approval process efficiently.
Ultimately, it is the franchisee's responsibility to comply with governmental requirements to gain approval or obtain a permit, and they must comply with these requirements in order to move ahead with their project.