Under what financial condition will Epcon Communities refund the Minimum Monthly Royalty payments?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
he sale of a Unit in the preceding month.
At the end of each calendar year during the term of your Franchise Agreement, we will review the Minimum Monthly Royalty payments and Point of Closing Royalty Payments made by you in that calendar year. If you have paid us more than $24,000 in Point of Closing Royalty Payments in that calendar year, and you are not in default under your agreements with us, we will refund to you any Minimum Monthly Royalty payments paid by you in that calendar year. If you violate the terms of your Franchise Agreement relating to transfer of your franchise or ownership interest of your business entity, you will not be eligible for any r
Source: Item 6 — OTHER FEES (FDD pages 16–22)
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 financial conditions. Each month that a project is under development, the franchisee must pay a Minimum Monthly Royalty, which is $2,000 for any month in which the franchisee did not close on the sale of a Unit in the preceding month.
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. If the franchisee has paid more than $24,000 in Point of Closing Royalty Payments and is not in default under their agreements with Epcon Communities, the company will refund any Minimum Monthly Royalty payments made during that calendar year.
However, if the franchisee violates the terms of the Franchise Agreement relating to the transfer of the franchise or ownership interest in the business entity, they will not be eligible for any refund of Minimum Monthly Royalty payments. This condition ensures that only franchisees who are actively developing their projects and meeting their sales targets, while also adhering to the terms of the agreement, are eligible for the refund.