Epcon CommunitiesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Epcon Communities franchise requires a total initial investment of $1.2M – $5.7M, including a $75K franchise fee and an ongoing 2.0% royalty[2]. Per the 2025 FDD, average unit revenue was $599K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.2M – $5.7M
- 75th pct Real Estate
- Avg gross sales
- $599K
- 18th pct Real Estate
- Royalty
- 2.0%
- 3rd pct Real Estate
- Units
- 101
- 43rd pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.2x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $1.2M – $5.7M including a $75K franchise fee, 2.0% ongoing royalty.
- Average unit revenue of $599K/year (median $560K).
- Verdict A (Top Quintile) with a risk score of 47/100.
- System growing at 16.9% CAGR over 3 years with 101 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Epcon Communities Franchising, LLC
- Parent company
- EC Franchising, LLC, Epcon JV LLC and Epcon Holding LLC
- Incorporated in
- OH
- HQ
- 500 Stonehenge Parkway, Dublin, Ohio 43017
- Auditor
- GBQ Partners LLC
- Audited financials
- Franchisor revenue
- $6.8M
- vs $7.2M prior year
Overview
About
Epcon Communities franchisees develop and operate active adult residential communities, managing land acquisition, site planning, construction oversight, sales/marketing, and community management. Day-to-day operations include coordinating with builders, managing sales teams, handling homeowner relations, and ensuring regulatory compliance across construction and Fair Housing regulations.
- CEO
- Joel D. Rhoades
- Headquarters
- OH
- Founded
- 1986
- FDD year
- 2025
- States available
- 21
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $1.1M | $5.6M |
| Total initial investment | $1.2M | $5.7M |
Source: Epcon Communities 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$108K
18.0% margin
Unlevered ROIC
3%
EBITDA / total invested capital
Payback
32.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.2M – $5.7M
- Below avg, review vs category
- Liquid capital req'd
- $15K – $30K
- Near category avg vs category
- Franchise fee
- $5K – $75K
- Below avg, review vs category
- Royalty
- 2.0%
- Per-unit closing fee based on gross sales price · typical 6–8%
- Ad fund
- $625 per month per project
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.0% of gross sales |
| Technology fee | $2K |
| Total fee load | 2.0% of rev |
A 2.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $599K
- Per unit, per year
- Median gross sales
- $560K
- Item 19 type
- Historical Settlement Prices for Franchisee Projects
- Range (low → high)
- $297K→$1.5M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 0 / 5 · above
Compared against 121 Real Estate brands
Revenue is only 0.2x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Real Estate averages
How Epcon Communities Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 101
- Opened
- 18
- Last reporting year
- Closed
- 1
- Turnover rate
- 1.0%
- Company-owned
- 18
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- +13.7%
- Net unit change last year
- 3-yr CAGR
- +16.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Epcon Communities presents HIGH RISK due to undisclosed going concern status, multiple active construction defect and Fair Housing lawsuits, missing profitability data, and slow unit growth relative to high capital requirements.
Audited financials (Item 21)
Yes · GBQ Partners LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 47 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or solvency concerns at corporate level
- 02HIGHMultiple active litigation cases including Fair Housing Act violation with Consent Decree — regulatory compliance risk and reputational damage
- 03MEDNo average net income disclosed — impossible to validate actual profitability despite $598,881 average revenue claim
- 04MINORHigh investment range ($1.15M–$5.7M) with only 101 units and 13.7% YoY growth — suggests slow unit expansion and extended payback periods
- 05MINORRoyalty structure ($3,000 minimum monthly) creates fixed cost burden regardless of actual sales performance
- 06HIGHConstruction defect litigation across multiple projects (Price, Marrington Villas, Lipari) indicates systemic quality/delivery issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Market Area |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 5 |
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- POS system
- Higharc
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Higharc
Item 20 · call current owners
Franchisee Contacts
62 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Epcon Communities · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Epcon Communities franchise?
The total investment to open a Epcon Communities franchise ranges from $1.2M – $5.7M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Epcon Communities franchise owners earn?
According to Item 19 of the Epcon Communities FDD, the average gross sales per unit is $599K. The median is $560K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Epcon Communities's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Epcon Communities (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Epcon Communities franchise locations are there?
As of their most recent FDD filing, Epcon Communities has 101 total units in the United States, including 20 franchised units and 18 company-owned units. 18 new units were opened in the latest reporting year.
Is Epcon Communities a good franchise to buy?
FranchiseVerdict rates Epcon Communities as a A-grade franchise with a risk score of 47 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.