Under what condition will Epcon Communities refund Minimum Monthly Royalty payments to the franchisee?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
e ownership of the undersigned Franchisee, if a corporation, partnership, limited liability company, or similar entity, is, in Franchisor's sole and absolute discretion, identical to or substantially similar to the ownership of the franchisee under the applicable Franchise Agreement for the Project in which the Unit is closed.
- (e) Annual Reconciliation. At the end of each calendar year during the term of this Agreement, Franchisor shall review the Minimum Monthly Royalty payments and Point of Closing Royalty Payments made by Franchi
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, a franchisee may receive a refund of Minimum Monthly Royalty payments under specific conditions. At the end of each calendar year, Epcon Communities will review the Minimum Monthly Royalty payments and Point of Closing Royalty Payments made by the franchisee during that year.
Provided the franchisee is not in default of the Franchise Agreement, Epcon Communities will refund any Minimum Monthly Royalty payments paid by the franchisee in that calendar year if the franchisee has paid more than $24,000 in Point of Closing Royalty Payments during the same calendar year. The refund will be issued within 90 days of the calendar year's end.
This reconciliation process offers a potential benefit to Epcon Communities franchisees, as it allows for a refund of Minimum Monthly Royalty payments if their Point of Closing Royalty Payments exceed a certain threshold, essentially crediting royalties paid against successful home closings. However, it's crucial to remain in compliance with the Franchise Agreement to be eligible for this refund.