What specific violations related to franchise transfer or ownership interest in the business entity would disqualify an Epcon Communities franchisee from Point of Closing Royalty Payment benefits?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
calendar year, but do not currently do so.
If you violate the terms of your Franchise Agreement relating to transfer of your franchise or ownership interest in your business entity, you will not be eligible for the volume-based reduction to Point of Closing Royalty Payments, the cap on the calculation of Point of Closing Royalty Payments or the limit on the total Point of Closing Royalty Payments to be made by you in a particular year.
Note 3: Marketing Program Fee: You must pay us, Epcon Marketing or another entity designated by us, a marketing program fee ("Marketing Program Fee") in the amount of $625 per month for each of your projects. However, if you have more than one project under construction and you are actively marketing Units for sale in all of those projects, we currently discount the amount of the Marketing Program Fee that you are required to pay.
Source: Item 6 — OTHER FEES (FDD pages 16–22)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, violating the terms of the Franchise Agreement relating to the transfer of the franchise or ownership interest in the business entity can impact a franchisee's eligibility for certain financial benefits related to Point of Closing Royalty Payments.
Specifically, if an Epcon Communities franchisee violates the terms of the Franchise Agreement concerning the transfer of the franchise or ownership interest in their business entity, they will not be eligible for the volume-based reduction to Point of Closing Royalty Payments. They would also lose eligibility for the cap on the calculation of Point of Closing Royalty Payments, and the limit on the total Point of Closing Royalty Payments to be made in a particular year.
Furthermore, Epcon Communities has the right to increase the percentage used to calculate the Point of Closing Royalty Payments to 3.5% if a franchisee violates the terms of the Franchise Agreement relating to the transfer of the franchise or ownership interest of their business entity. Additionally, a franchisee would not be eligible for any refund of Minimum Monthly Royalty payments if they violate the terms of their Franchise Agreement relating to transfer of their franchise or ownership interest of their business entity.