Epcon Announces Updates to Franchise Disclosure Document
Top 50 Home Builder Improves Franchise Agreement
June 21, 2019 // Franchising.com // COLUMBUS, OH - Epcon Communities Franchising has made several changes to its Franchise Disclosure Document (FDD) for 2019, including shortening the document and introducing the new royalty structure in its revised Franchise Agreement.
“The new Franchise Agreement eliminates many of the objections we’ve heard in the past,” said Paul Hanson, president of Epcon Communities Franchising. “It’s a beneficial change both for franchise builders and for Epcon.”
The new Franchise Agreement sets up a new royalty structure that scales down as franchise builders build more houses. The new royalty structure has five total tiers - compared to two in the old agreement. It starts at 2 percent of the sale price for the first six houses and ends at 1 percent for more than 50 houses.
“We’re hoping to attract bigger builders that want to build a lot of Epcon projects,” Hanson said. “This descending royalty rate structure incentivizes franchise builders to build and close on more houses in a calendar year.”
The new FDD is shortened - Epcon cut 33 pages. The Franchise Agreement also changes the monthly fee structure, delaying its commencement to help with cash flow for franchise builders as they launch their businesses.
Hanson joined Epcon in November 2018 from Arthur Rutenberg Homes, where he was group vice president. He has spent his first six months at Epcon using his expertise in homebuilding and franchising to take a fresh look at how Epcon attracts potential franchise builders. The new FDD is a product of that work.
“We see an opportunity to build more than 2,000 houses per year with our network of franchise builders,” Hanson said. “The operational and marketing support Epcon offers is up to the task, and this new Franchise Agreement and FDD make us more attractive for builders who have interest in exploring the immense opportunity in 55+ housing.”
Headquartered in Dublin, Ohio, Epcon is one of America's largest home builders (Builder Magazine, 2019). Epcon has integrated smart, innovative designs with the most desirable modern amenities that have been popular with the lifestyle of the 55+ home buyer for more than 30 years.
By leveraging its proven designs, technology and marketing and sales resources, Epcon Franchise Builders are given a competitive advantage to build smarter, maximize potential and scale faster.
Learn more at EpconFranchising.com.
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