factual

What is the standard monthly Marketing Program Fee for each Epcon Communities project?

Epcon_Communities Franchise · 2025 FDD

Answer from 2025 FDD Document

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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. Currently, a franchisee who meets these requirements will pay Marketing Program Fees per month in the following amounts:

Projects Under Development During the Month Monthly Marketing Program Fee Applicable to Projects For That Month
First and Second Project $625 each Project
Third through Fifth Project $500 each Project
Sixth Project and Each $375 each Project
Additional Project

We may discontinue the discount of the Marketing Program Fee at any time. When estimating the amount for the Marketing Program Fee in this Item 6, it was assumed that you would have only one project.

The first Marketing Program Fee payment is due on the 15th day of each month beginning the earlier of (a) the 18th month after the month in which the Franchise Agreement was signed by you and us, or (b) the month immediately after the month in which you request that we include your Epcon community on our web site, or (c) the fifteenth day of the month immediately following the month of your first closing on a sale of a Unit within your Project Your obligation to pay the Market Program Fee continues until the last Unit in your project is sold. We have the right to withdraw the Marketing Program Fee by EFT.

Your monthly Marketing Program Fee may be increased by us or Epcon Marketing from year to year. If so, it will be raised no more than 120% of the monthly Marketing Program Fee paid by you during the immediately preceding calendar year.

Source: Item 6 — OTHER FEES (FDD pages 16–22)

What This Means (2025 FDD)

According to Epcon Communities' 2025 Franchise Disclosure Document, the standard monthly Marketing Program Fee is $625 per project. However, this amount may be discounted if the franchisee has multiple projects under construction and is actively marketing units for sale in all of those projects.

Specifically, for franchisees with multiple projects, the monthly Marketing Program Fees are structured as follows: $625 each for the first and second projects, $500 each for the third through fifth projects, and $375 each for the sixth and each additional project. This discount is not guaranteed, as Epcon Communities retains the right to discontinue it at any time.

The first Marketing Program Fee payment is due on the 15th day of each month, starting from the earliest of three conditions: (a) 18 months after the franchise agreement is signed, (b) the month after Epcon Communities includes the franchisee's community on their website, or (c) the month following the first closing on a unit sale within the project. The obligation to pay this fee continues until the last unit in the project is sold. Furthermore, Epcon Communities has the right to increase the monthly Marketing Program Fee from year to year, but it will not be raised by more than 120% of the fee paid during the preceding calendar year.

It is important to note that franchisees who signed agreements that differ from the standard Franchise Agreement might have different Marketing Program Fee requirements or may not be required to pay the fee at all. However, if these franchisees want to develop additional projects, they may be required to sign an amendment to their agreements obligating them to pay the Marketing Program Fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.