What is the 'Settlement Statement' referring to in the context of Epcon Communities' Point of Closing Royalty Payments?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
No later than two days prior to a Unit's closing,
a Settlement Statement or Settlement Disclosure Form, reflecting the applicable Point of Closing Royalty Payment for such Unit, shall be provided to Franchisor. Upon Franchisor's receipt of each Point of Closing Royalty Payment, Franchisor will, at Franchisee's request and expense, promptly deliver a partial mortgage release and/or partial security interest release releasing Franchisor's lien as against the applicable Unit.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a 'Settlement Statement' or 'Settlement Disclosure Form' is a document that reflects the applicable Point of Closing Royalty Payment for each unit. This document must be provided to Epcon Communities no later than two days prior to the closing of a unit.
For a prospective franchisee, this means that before finalizing the sale of a unit, they must provide documentation to Epcon Communities showing the royalty payment due. This allows Epcon Communities to verify the payment and release their lien on the property. The minimum Point of Closing Royalty Payment for each unit is $3,000, even with volume-based reductions or caps.
Upon receiving the Point of Closing Royalty Payment, Epcon Communities will provide a partial mortgage release or partial security interest release, which removes Epcon Communities' lien against the specific unit. This process ensures that Epcon Communities receives its royalty payments in a timely manner and that the franchisee can transfer clear title to the buyer.