When does Epcon Communities recognize revenue?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue is recognized when a performance obligation has been satisfied by transferring control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, the company recognizes revenue when a performance obligation has been satisfied. This occurs when control of promised products or services is transferred to customers. The revenue amount recognized reflects the consideration Epcon Communities expects to receive in exchange for those products or services.
For a prospective franchisee, this means that Epcon Communities recognizes revenue upon completion of their obligations, specifically when the promised services or products are delivered to the customer. This is a standard accounting practice, ensuring that revenue is recorded when it is earned and realized.
Understanding the revenue recognition policy is crucial for franchisees as it impacts how the franchisor's financial performance is evaluated. It also provides insight into the timing of revenue recognition, which can be important for assessing the franchisor's financial stability and growth potential.