How does Epcon Communities provide a partial release of mortgage?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
cable. | | arbitration or mediation | | | | v. Choice of forum | Not Applicable | Not Applicable. | | w. Choice of law | Not Applicable | Not Applicable. |
| Provision | Article or Section in Mortgage | Summary | |---|---|---| | a. Length of the franchise term | Paragraph E | Mortgage remains in effect until termination by us. | | b. Renewal or extension of the | Not Applicable | Not Applicable. | | term | | | | c. Requirements for franchisee | Not Applicable | Not Applicable. | | to renew or extend | | |
Market Area Agreement and Initial Market Area Agreement
| Provision | Article or Section in Mortgage | Summary |
|---|---|---|
| d. Termination by franchisee | Paragraph E (1) and (2) | We will terminate the mortgage entirely upon payment of all sums secured by the Mortgage and performance of all of obligations under the Mortgage. We will provide partial release of mortgage upon payment of applicable percent of sales price of each Unit. |
| e. Termination by franchisor | Not Applicable | Not Applicable. |
| without cause | ||
| f. Termination by franchisor | Not Applicable | Not Applicable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 55–69)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a partial release of mortgage is provided upon payment of the applicable percentage of the sales price of each unit. This means that as an Epcon Communities franchisee sells individual units within a development, a portion of the mortgage on that specific unit can be released.
This provision is beneficial for franchisees as it allows them to manage their financial obligations in alignment with their sales. By paying a percentage of the sales price for each unit, the franchisee reduces the overall mortgage liability incrementally. This can improve cash flow and reduce the financial burden associated with unsold units.
The specific percentage required for the partial release is not detailed in this section, so prospective franchisees should clarify this percentage with Epcon Communities to fully understand the financial implications. Understanding this percentage is crucial for accurate financial planning and forecasting the profitability of each project. It is also important to note that this partial release is contingent upon the payment of the specified percentage; failure to meet this requirement would likely prevent the release of the mortgage on the unit.