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).
- Rated CAUTION with a risk score of 72/100.
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Epcon Communities unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Epcon Communities units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.6M purchase
Total debt
$5.3M
SBA $3.3M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 72 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
62 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Epcon Communities · FDD (2025) PDF