Does Epcon Communities warrant compliance of architectural plans with local laws?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Epcon Communities business and project are subject to numerous laws and governmental regulations that apply to businesses generally. In addition, you must comply with a variety of federal, state and/or local laws and regulations concerning zoning and building codes, licensing requirements for contractors, property managers and real estate salespersons, the formation and management of condominium and homeowner associations, occupational health and safety on the construction site, housing finance, the federal Interstate Land Sales Full Disclosure Act, equal housing laws, the Fair Housing Act and the Americans with Disabilities Act, as well as the Accessibility Guidelines promulgated under each of these laws. Before you purchase an Epcon Communities franchise, we suggest that you check on the existence and the requirements of these laws and regulations in your area. We do not warrant to you that the architectural plans, specifications, condominium association materials and site plan samples provided as part of our Development System will comply with the laws and regulations applicable in the state and local governmental jurisdictions in which you decide to locate your project. You will be required to engage a local architect and legal counsel to assist you in determining which state and local government agencies are involved in regulating real estate development activity in your area and in making any modifications to the architectural plans, specifications, sample condominium association materials and site plan samples that are necessary to permit your project to be in compliance with all applicable laws and regulations. You must provide us with a letter from your architect detailing all of the changes made to the architectural plans, if any. If you are unable to obtain permits and approvals from governmental authorities regarding a particular project site within thirty-six months after signing the Franchise Agreement, you may terminate your Franchise Agreement if you provide timely notice to us of your desire to terminate the agreement and you pay us a termination fee. If governmental authorities require you to make modifications to the plans to gain approval or obtain a permit, you must comply with these requirements in order to move ahead with your project.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, Epcon Communities does not guarantee that the architectural plans and other materials provided as part of their Development System will comply with local laws and regulations. This means that franchisees cannot assume the plans are automatically approved and ready for construction in their specific area. Instead, franchisees bear the responsibility of ensuring compliance.
To ensure compliance, Epcon Communities requires franchisees to engage a local architect and legal counsel. These professionals will help navigate the specific state and local government regulations related to real estate development in the franchisee's area. They will also be responsible for making any necessary modifications to the architectural plans, specifications, sample condominium association materials, and site plan samples to ensure the project adheres to all applicable laws and regulations. Franchisees must then provide Epcon Communities with a letter from their architect detailing any changes made to the architectural plans.
This requirement places a significant burden on the franchisee, who must factor in the costs of hiring these professionals and the potential delays involved in obtaining permits and approvals. The FDD states that if a franchisee is unable to obtain the necessary permits and approvals within thirty-six months of signing the Franchise Agreement, they have the option to terminate the agreement, but only if they provide timely notice and pay a termination fee to Epcon Communities. This highlights the importance of thorough due diligence and understanding local regulations before committing to an Epcon Communities franchise.
Ultimately, the franchisee is responsible for ensuring their project complies with all local laws and regulations. This includes any modifications required by governmental authorities to gain approval or obtain a permit. Franchisees must comply with these requirements to move forward with their project, reinforcing the need for proactive engagement with local experts and authorities.