Risk Score
Pending analysis
Investment Range
$1,154,025 - $5,724,967
Franchise Fee
$5,000
Total US Locations
101
Business Summary
Epcon Communities Franchising, LLC grants franchises to individuals and entities, allowing them to use its original development system and copyrighted architectural plans. This system is designed for developing, constructing, and marketing residential dwellings, specifically focusing on "care-free living" communities that feature unique architectural designs. Franchisees typically purchase raw land for their projects, though buying developed lots is also an option. Epcon Communities Franchising, LLC provides the necessary intellectual property and guidance for all stages of development, construction, and marketing of these residential homes.
Corporate History
The foundation of what would become Epcon Communities Franchising, LLC began in 1986 when the principals of Epcon LLC initiated development projects that ultimately shaped the Epcon Communities Development System. Epcon Communities Franchising, Inc. (ECFI), operating initially as Epmark, Inc., started offering franchises in August 1996. After changing its name to Epcon Communities Franchising, Inc. in March 2005, the company focused on its current franchise model. On December 31, 2019, ECFI converted to an Ohio limited liability company, becoming Epcon Communities Franchising, LLC. Since 2023, Epcon Communities Franchising, LLC has also expanded its franchise offerings into Canada, though no active franchises currently exist there. Its affiliated entities, such as Epcon, Epcon Carolinas, Epcon Indiana, Epcon Georgia, and Epcon Tennessee, have continuously developed over 128 residential communities using this system for 39 years.
Financial Overview
Investment Range
$1,154,025 - $5,724,967
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$75,000
Royalty %
2%
Equipment Costs (Low)
$493,600
Equipment Costs (High)
$3,610,600
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Epcon Communities Franchising, LLC's audited financial statements for the years ending December 31, 2024, and 2023, received an unqualified opinion from its independent auditor. This indicates that the financial statements fairly present the company's financial position and cash flows in accordance with generally accepted accounting principles. The auditor's report does not include a going concern qualification, suggesting no substantial doubt about the company's ability to continue operations. Over these two years, Epcon Communities Franchising, LLC maintained positive working capital, with $2,016,535 in 2024 and $1,269,629 in 2023, and reported net incomes of $1,224,587 and $1,371,424 respectively, indicating a stable financial standing.
Financing Details
Epcon Communities Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that Epcon Communities franchisees are responsible for securing all necessary funding for their initial investment and ongoing project development through third-party lenders. Epcon Communities Franchising, LLC also does not guarantee any loans or leases that franchisees may obtain.
Performance Metrics
Total US Locations
101
Franchised Units
83
Corporate Units
18
Avg Square Footage
1,776
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Epcon Communities Franchising, LLC and its affiliates have been involved in several legal matters. In August 2022, a case was filed in South Carolina against Epcon Communities, LLC and other entities concerning plumbing defects in a residential unit, which concluded with a $95,000 payment, with $35,000 paid by the Epcon entities. Another lawsuit, commenced in June 2021 in South Carolina, alleged fraud and negligence in construction, settling for $1,000,000 from Epcon defendants. A case initially filed in January 2019 in North Carolina, involving Epcon Communities, LLC and its principals, alleged fraud, negligent misrepresentation, and unfair trade practices related to storm sewer and lake access issues; this was voluntarily dismissed and settled in November 2020 for $52,500 plus additional work. In October 2020, a lawsuit was filed alleging construction activities caused dust damage to a plaintiff's property; this case settled for $25,000, with Epcon defendants contributing $22,000. Additionally, Epcon Communities Franchising, LLC is involved in an ongoing matter stemming from an October 2019 lawsuit by the U.S. Department of Justice. This case alleges discrimination against persons with disabilities due to non-compliant accessibility features at 32 multi-family properties, 21 of which were developed by franchisees. A Consent Decree was entered in March 2020, requiring a $2,200,000 fund for retrofits, a $51,303 civil penalty, a $40,000 payment to a fair housing advocacy group, and a $300,000 fund for aggrieved persons. Compliance with this Consent Decree is currently ongoing.
Bankruptcy History
Epcon Communities Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Renewal Conditions
Epcon Communities Franchising, LLC does not offer the option to renew or extend the franchise agreement. Instead, the agreement automatically terminates 30 days after the sale of the last unit in a franchisee's project.
Training & Support Program
Franchisor Assistance
Before a franchisee begins development, Epcon Communities Franchising, LLC provides unstamped and unsealed architectural plans and specifications for units, clubhouses, and pavilions, along with sample site and landscape plans. Franchisees also receive an Operations Manual and up to 50 hours of consulting services covering planning, financing, construction, and marketing, which includes initial training sessions. After opening, Epcon Communities Franchising, LLC continues to provide consulting services and, upon request, modifications and improvements to the Development System. The franchisor maintains a website to promote franchisee projects, offering individual web pages that franchisees can update. Franchisees also have access to online training modules and a password-protected online support system. Epcon Communities Franchising, LLC leverages its affiliates' experience in developing projects to continuously improve the Development System and may negotiate group purchase arrangements and special pricing with suppliers.
Initial Training Hours
12
Training Location
Greater Columbus, Ohio area
Ongoing Support
After opening, Epcon Communities Franchising, LLC provides continued consulting services as part of the initial 50-hour package. Franchisees can request and receive modifications and improvements to the Development System. The franchisor maintains a website to promote franchisee projects, offering individual web pages that franchisees can update. Additionally, online training modules and access to a password-protected online support system with the Operations Manual and other resources are available. Epcon Communities Franchising, LLC periodically organizes group printing of sales brochures to reduce costs and negotiates special pricing with suppliers for the overall benefit of the franchise system. Franchisees are also encouraged to attend an annual national conference designed for sharing best practices and improving sales and operations.
Franchise Requirements
Ideal Candidate Profile
Epcon Communities Franchising, LLC looks for franchisees who are capable of developing, constructing, and marketing residential communities focused on "care-free living." Ideal candidates should possess a strong understanding of real estate development processes, including navigating local zoning laws, building codes, and permit requirements. They must be prepared to engage local professionals such as architects and legal counsel to ensure project compliance. While not strictly required to personally manage daily construction, it is recommended that at least one owner of the franchised business actively participates in the project's development. Franchisees should also be prepared to hire and train an in-house sales team and, if requested by Epcon Communities, ensure a dedicated Director of Operations supervises the project.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Exclusive
Territory Size Requirements
Epcon Communities Franchising, LLC defines its Market Areas as geographic regions designed to generate sufficient purchaser support for a project. Generally, these Market Areas encompass a radius of between 3 to 12 miles from the project site, while also considering existing natural and man-made boundaries and socioeconomic conditions in the area.
Staffing Notes
Epcon Communities Franchising, LLC recommends that franchisees build an in-house team of sales consultants and suggests hiring and training them before entering into purchase contracts. During training, a sales consultant is assumed to be paid a weekly salary of $800, with a recommendation to transition to a full commission structure afterwards. Epcon Communities Franchising, LLC may also require a project to be under the direct, full-time supervision of an approved Director of Operations and may require a full-time in-house sales consultant to sell units within the project. Additionally, the business requires a job-site superintendent or construction manager and direct labor.