What will Epcon Communities provide upon receipt of each Point of Closing Royalty Payment?

According to Epcon Communities' 2025 Franchise Disclosure Document, upon receiving each Point of Closing Royalty Payment from a franchisee, Epcon Communities will, at the franchisee's request and expense, promptly deliver a partial mortgage release and/or partial security interest release. This release pertains to Epcon Communities' lien against the specific unit for which the royalty payment was made.

In practical terms, this means that as each unit in an Epcon Communities development is sold and the corresponding royalty payment is remitted, the franchisee can request that Epcon Communities release its claim on that individual property. This is a standard procedure in real estate development, ensuring that the new homeowner receives a clear title to their property without any encumbrances from Epcon Communities' overarching franchise agreement with the developer.

The franchisee bears the expense of obtaining this release, which may include legal and administrative fees. This is a crucial step in the closing process for each unit sale, as it directly impacts the transfer of ownership and the homeowner's rights to the property. Franchisees should factor these costs into their financial projections for each project.