FRANCHISE INFORMATION REPORT · Franchise Information Report Call us at 1-888-909-2430 Scale Your...

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FRANCHISE INFORMATION REPORT

Transcript of FRANCHISE INFORMATION REPORT · Franchise Information Report Call us at 1-888-909-2430 Scale Your...

Page 1: FRANCHISE INFORMATION REPORT · Franchise Information Report Call us at 1-888-909-2430 Scale Your Business and Accelerate Your Sales When You Become an Epcon Franchise Builder Epcon

FRANCHISE INFORMATION REPORT

Page 2: FRANCHISE INFORMATION REPORT · Franchise Information Report Call us at 1-888-909-2430 Scale Your Business and Accelerate Your Sales When You Become an Epcon Franchise Builder Epcon

Franchise Information Report

www.epconfranchising.com Call us at 1-888-909-2430

Scale Your Business and Accelerate Your Sales When You Become an Epcon Franchise BuilderEpcon is a homebuilding and land development franchise that helps you construct entire communities with unique homes that appeal to the most underserved market in the industry – the 55+ demographic. This demographic, primarily made up of Baby Boomers, is massively underserved but are readier then ever to downsize their homes and find a community that appeals to their active lifestyle.

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Here are some fast facts about the Baby Boomer real estate housing market:

Begin Your Journey in the 55+ Homebuilding Market

Whether you’re a builder, developer or investor now, is the time to capitalize on this underserved demographic. With help from Epcon and by becoming a Franchise Builder, you can see growth in both your business and your sales.

The main benefits of being an Epcon Franchise Builder are:

Copyrighted floor plans that are the result of millions of dollars in research and development.When it comes to what’s popular with buyers, we’re not guessing. We have surveyed thousands of customers over the years to learn their preferences, and we have commissioned architects to deliver homes that offer what customers want.

Proven systems for residential production building.We have worked with many small-volume home builders to help them scale up their operations and go from building and selling a handful of houses each year to selling tens or hundreds of homes.

Approximately 32 million Baby Boomers, or 42% of all Boomers, plan to move

Almost all are already over 55, latecomers are set to turn 55 in the next 2 years

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Grow Your Business Your Way

Since our founding, Epcon and its Franchise Builders have developed more than 30,000 homes in 28 states. Each year more builders are joining as they realize the massive potential in the 55+ market. We’re here to help you see the growth that we had by providing access to our proven Business Blueprint to help you solidify your place in your local market and see the growth you’re looking for.

Our systems reduce downtime, which make higher sales velocity possible.

We provide:

• Systems for construction project management that allow you to more accurately model labor and material needs and costs. This efficient process reduces downtime on job sites.

• Marketing tools and resources that allow you to pre-sell homes before they are built, using virtual tours, professional photography and proven marketing materials.

• Sales training that helps your team win over buyers.• Quality control systems that mean buyers are happy and provide great word-of-mouth.• A comprehensive approach to building an entire community that residents will love

— and where buyers will want to live.

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A Builder You Can TrustWe’ve been building homes for over 30 years and have earned a reputation for being reliable and trustworthy. Epcon has earned its position as one of the largest U.S. builders of single-family lifestyle communities that appeal to the 55+ buyer. Our home building franchise helps home builders quickly enter or scale their business in the 55+ home building market.

Our Franchise Builders have access to the same home building blueprint that has made Epcon Communitites a U.S. “Top 50 US Home Builder”, year-after-year. This blueprint helps them to accelerate their growth and market their homes effectively.

Epcon co-founders, Ed Bacome and Phil Fankhauser believe that great home design can improve lives and our customers have shared countless testimonials that tell us that Ed and Phil are right. Epcon’s home designs are market-researched, field-proven and time-tested to appeal to our core buyer.

We work with architects nationwide to develop floor plans with features like open entertainment space, outdoor living, and space efficiency. Plus, all of our communities offer property management. Our exclusive designs appeal to the 55+ home buyer looking for a low-maintenance, carefree lifestyle without all the hassles of typical home ownership.

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A comprehensive building blueprint

Epcon Franchise Builders have access to a complete blueprint of plans, tools and processes to help accelerate sales, scale up production and gain a competitive edge over national builders in the 55+ market.

We help our Franchise Builders by:

• Teaching the core strategies and processes for home building, which enables builders to develop entire communities.

• Delivering marketing tools and sales training that enables them to sell homes quickly and effectively.

• Providing access to industry leaders and the deep industry knowledge of a national builder. We share our proprietary tools and methods with Franchise Builders to help them budget, measure costs, and maintain margins.

We know that it is important to be able to build and sell quickly. Our system teaches you how to build a home in as little as 90 days while maintaining exceptional quality and owner satisfaction. With full access to our proven business blueprint, you can think bigger, build smarter, and scale faster to maximize ROI.

A nationwide community

Becoming an Epcon Franchise Builder not only gives you access to our expert team, proven plans, systems and processes, but you’ll also gain exclusive membership into a nationwide community of builders who collaborate and share ideas and strategies with each other that help their businesses grow.

Milwaukee Franchise Builder, John Wahlen, says that the support he gets from Epcon makes a big difference. “One of the biggest things is the intranet. I can talk to other owners of franchises – our sales team can link into things that are happening around the country that are successful.”

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How Two Builders Started One of the Most Successful Homebuilding Companies in the U.S.With more than 30 years in the homebuilding business, Epcon has established itself as one of the most trusted builders in the United States. By providing builders the opportunity to franchise, we help home builders across the U.S. accelerate sales and scale their business by targeting the 55+ home buyer, which is the most underserved market in the homebuilding industry.

Epcon was started in Columbus, Ohio in 1986 by Philip Frankhauser and Edward Bacome when they realized the needs of the 55+ home buyer had been overlooked by builders everywhere. They knew these homes had to be specially tailored to this demographic’s unique needs. These homes were going to be built for people who were ready to downsize and spend time enjoying life rather than mowing yards and dusting extra unused bedrooms.

The partners’ first community was Deer Run, and it sold out fast. Word got around about the unique community and there was soon demand from a fast-growing, underserved demographic. Three years after opening their first community, a local builder contacted Frankhauser and Bacome and asked to use Epcon’s design and floor plans for a community nearby. At first, the co-founders were hesitant to share their success and expand beyond Columbus. But soon, more and more builders were seeking out Epcon’s style and floor plan to develop communities in nearby cities.

From the very beginning, the popularity of Epcon Communities quickly spread through Central Ohio and beyond. Frankhauser and Bacome granted their first license of their construction plans in 1996. Today, there are nearly 400 communities in 28 states.“I think we have the strongest product in the marketplace and the best designs in the industry” says Phil Frankhauser. “No one in history has invested the time or money that we have in creating such a small, select group of homes with such a potentially good return on investment. Our homes usually sell at a really good clip because we truly address the needs of the buyer.”

Into the Future

For the past three decades, we have continued to improve our designs as homeowners’ wants and needs have evolved. Recently, we surveyed 6,000 buyers to find out what features were important to them in a new home. Based on these responses we worked with leading architects to create new designs for our builders to use and buyers to love.Our designs are constantly evolving and growing, but one thing stays the same – providing the home buyer award-winning layouts they’ll love to call home.

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Scale Your Business and Increase ROI by Building Homes for the 55+ MarketEconomic conditions and changing demographics make now a perfect time for U.S. real estate investors to look for new opportunities. When considering new segments, the 55+ housing market represents a significant opportunity. This demographic is the largest and most underserved segment of buyers in the market today, making now the right time to develop communities to serve their needs. With a demand for low-maintenance, single family homes in the marketplace, you have an opportunity to scale fast and increase your ROI. Here’s why Baby Boomers are an excellent segment to target:

• There are 76 million Baby Boomers in the U.S.• The 55+ housing market has shown year-over-year gains every year since 2012

and the demand is only growing.• In 2017, 30% of home buyers were Baby Boomers.• This segment is less dependent on financing than younger generations.• The 55+ demographic controls almost two-thirds of the nation’s home equity

(approximately $8 trillion) and accounts for $6.4 trillion in income.

Not only are there a lot of Baby Boomers, but they are also buying more homes as they start to retire and downsize. So whether you are looking to move away from commercial properties or are simply looking to diversify your portfolio, the 55+ housing market presents ample opportunity to accelerate your growth and capitalize on this underserved market.

There is also a lot of data that suggests the Baby Boomer market will be strong for years to come. According to the U.S. Census Bureau, the total population of 55+ Americans is projected to hit 100 million by 2020, and The Harvard University Joint Center for Housing Studies projects there will be 132 million Americans 50 years and older by 2030. Not only is this demographic large, they are also motivated and willing to buy. With so many 55+ home buyers, now is a great time to get started developing, as demand is exceeding supply.

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What Makes a Successful 55+ Community?

The needs of the 55+ demographic are unique. Home buyers in this segment are nearing retirement age and are getting ready to downsize. Because of this, they are looking for less square footage, fewer bedrooms and less maintenance. When deciding on buying a new house this demographic is motivated by home features, amenities and neighborhood location.

Home Features the 55+ Buyer Will Love

Home features and personalization are important to the 55+ home buyer. A survey of the 55+ age group found that buyers are looking for high ceilings, natural light and sufficient storage space. Since lifestyle is the focus of this demographic, it is important for them to spend time with friends, entertain and continue their hobbies and other leisure activities. Communities offering detached condominium or patio homes appeal to the 55+ buyer more than a multifamily condominium or apartment complex.

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Sell Homes Faster with the Right List of Amenities

This segment of buyers is looking for a variety of amenities offered such as planned social events, a clubhouse or a pool. Communities may also provide exterior home maintenance like lawn care, snow removal and trash pickup. These are all important to a successful 55+ community as they facilitate the type of lifestyle that appeals to the demographic.

Location, Location, Location

Location is arguably the most crucial factor to the 55+ home buyer. In fact, 71% of adults from 50 to 64 years old say they want to be in close proximity to family and friends. Without a perfect location, the 55+ demographic will not care about your perfect home features or plentiful amenities. It has been said before, location is everything. Baby Boomers don’t want to live in remote areas and instead wish to be near shopping, restaurants, medical services and grocery stores.

How Epcon Meets These Needs

At Epcon, we have done extensive research to build home plans that meet the unique needs of the 55+ home buyer. We feel this is why we have seen such success in the market. Our home plans can offer desired amenities such as a clubhouse and a pool to facilitate a sense of community. We also provide a home with less than 3,000 square feet, a key criterion for 66.7% of Baby Boomers when purchasing a home. And lastly, we have done extensive research to ensure that our community locations meet the needs of the 55+ home buyer.

Becoming an Epcon Franchise Builder gives you access to our business blueprint and can help you thrive in the 55+ market. We know what it takes to build for this unique market.

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Think Bigger. Build Smarter. Scale Faster.We’re different from other franchises because you keep the brand and processes you’ve built, but have the flexibility to tap into the plans, support and resources you need to build smarter, increase sales velocity and scale faster.

The Epcon Homebuilding Franchise offers you an opportunity to differentiate and expand your brand by developing communities of single-family, low maintenance homes that appeal to the 55+ home buyer. Our homebuilding franchise takes our proven processes and turned it into a business blueprint for you to own your local market.

Our home plans are the result of intensive research and development. Before creating our home plans, we asked potential buyers their most important wants and needs and included this wish list in the development process. This is how Epcon builds homes that appeal to the 55+ home buyer.

Another advantage of franchising your homebuilding business is the power of a national name. Franchising offers national sales and marketing support and established brand recognition that is impactful to a franchise builder. Our builders gain an advantage from their association with our nationally respected brand.

Our Homes are Perfect in Today’s Marketplace

In today’s marketplace, there are 76 million baby boomers and in 2024 there will be 12.3 to 12.9 million more households age 60 and over. However, this large demographic is massively underserved when it comes to home buying options. The 55+ demographic is looking for new homes that offer amenities that appeal to their active lifestyle so that they can enjoy their life without having to worry about maintaining a huge lawn or cleaning extra bedrooms.

Since the very beginning, we have always been focused on serving the 55+ buyer. Through years of research and a passion for great homebuilding, we have created communities that are ideal for the market today. Our research-backed home plans paired with the current marketplace allow our Franchise Builders to develop their homes quickly and sell before they are even built.

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Home Plans That are Popular with Buyers

What makes our homes so popular with the 55+ demographic? We offer what the 55+ home buyer wants; beautiful homes, a sense of community and property management. Our buyers don’t just want a house, they want a home. In most of our communities, we offer a central gathering place for parties, game nights, or to relax by the pool. Additionally, our buyers are downsizing, and the last thing they want to do is clean out their gutters or mow their lawn. With our communities they can focus on what they want instead of tending to a lot of home maintenance.

Another reason our home plans are popular is the amount of personalization we offer in each home. In many Epcon communities, we offer over 200 upgrades, which lets each home buyer tailor their home to their liking. Upgrades include wood floors, tile floors, granite counter tops, upgraded appliances, added porches and more.

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Helping You Reach Your Maximum Potential Through Unparalleled Support

At Epcon, we’re here to help you every step of the way from helping you find a location, to building and selling a thriving community. We offer you the financial, marketing and real estate expertise you need throughout the entirety of your business.

Being an Epcon Home Builder gives you the opportunity to work with our team of consultative experts and Franchise Builders who know the business inside-out and are vested in helping you succeed. We also have national vendor partners to provide you the supplies and materials you need to build fast and smart. Because of this, Epcon Franchise Builders build two times faster than the industry average. You can rely on Epcon to help you navigate the complexity of developing planned communities that appeal to the 55+ home buyer. We are here to help every step of the way.

Do I Need Experience To Become an Epcon Franchise Builder

The great thing about becoming an Epcon Franchise Builder is that it does not require you to be an existing builder. We believe that anyone with a drive for developing communities and has the sufficient capital to do so will be able to start a homebuilding business with the help of Epcon.

If you are a builder with no experience, there are many additional advantages to Epcon. First, we provide you with all the details you need to develop and build communities that homebuyers will love. You won’t be steps behind, as you’ll have the research-driven plans and our expert knowledge behind you. We also offer the power of our nationally known name, which is helpful to builders just getting started.

Is Franchising Right for Me?

Do you find yourself now wondering if franchising is right for you? We’re here to help you figure it out because we want your decision to be made with 100% confidence.

Franchising helps you expand your brand while having all the tools and resources right at your fingertips. And there are many great advantages of being an Epcon Franchise Builder that you should consider when making the decision.

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Becoming an Epcon Franchise Builder offers three main advantages that are important in helping you thrive: education, training and a national name.

Education. When you become an Epcon Franchise Builder you acquire all the knowledge of a top 50 US home builder. You’ll get the knowledge from a company that has been in the business for more than 30 years. You’ll receive data, existing plans and a set of systems and processes to help you generate more volume and make more money.

Training. A great advantage of becoming a Franchise Builder is the tools and resources you’ll receive such as sales training and marketing materials. We have years of experience and know what works and what doesn’t. We want to share this with you so you can see future business growth.

National Name. Franchising offers an established brand recognition by having the Epcon name behind your brand that can be very powerful to a Franchise Builder. Epcon Franchise Builders gain an immediate advantage from their association with a highly respected and nationally known name. Additionally, this will help you compete effectively with national builders in your local market. When you become a part of Epcon, you get the advantages that national builders have while retaining your personal brand.

“We tried to develop a product on our own. We learned Epcon spent years on developing their systems and thought it would be well worth the effort to join a franchise rather than take years to fine-tune our process.” Scott Lehner, Perfection Builders, Wichita, Kansas.

There are a lot of factors to consider when thinking about becoming a Franchise Builder, but you don’t have to make the decision alone. It all comes down to if you’re looking for the independence of owning your own business but still want support from a well-established company.

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See What Makes Our Buyers Fall in Love with EpconBefore you decide if becoming an Epcon Franchise Builder is right for you, we think it’s important for you to see a community for yourself. Since our founding, Epcon and our Franchise Builders have developed nearly 400 communities and most of our Franchise Builders decided to join Epcon after seeing one firsthand. These visits show you the reason why our home buyers fall in love with our homes. Take a tour for yourself and see what over 30,000 people call home.

A Trusted Builder Can Help You Become a Homebuilding Leader in Your Market

Becoming an Epcon Franchise Builder is easy. After visiting one of our communities, follow these steps to get started.

Step 1: Complete a Franchise Information Request Form If you are interested in taking the next step and want to learn even more about the opportunity to become an Epcon Franchise Builder then this is the right place to start. After signing up, you’ll receive an email to download our free information guide. This guide explains everything you need to know in great detail so that you can make an informed decision. Upon completing the form we will set up a call to learn more about you and answer any questions.

Step 2: Fill out the Franchise Application Form If you feel that we would be a good fit, the next step is to fill out an application. The application is not a contract, and does not lock you in to anything long term. Instead, it simply asks for more details about you and your building plan to assess if you meet the qualifications to develop an Epcon community.

Step 3: Review our Franchise Disclosure DocumentOur Franchise Disclosure Document has 23 sections. It’s during this step we encourage you to review the document with a specialized franchise attorney and speak with our franchise owners to get a full, well-rounded view of what being an Epcon Franchise Builder would be like for you.

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Step 4: Visit us at Epcon HeadquartersThe best way to envision yourself as an Epcon Franchise Builder is to see what our communities are all about. During a Discovery Day at our headquarters in Columbus, Ohio, you’ll have the chance to meet with our leadership team and see our Epcon Communities in the Columbus Area.

Step 5: Finalize the Franchise AgreementOnce you have decided becoming an Epcon Franchise Builder is the right step, you’ll need to form an ownership group. Once this is completed, we require all Franchise Builders to complete a form detailing your ownership group so we can complete a franchise agreement.

Step 6: Sign the Franchise Agreement and Get Started!This step is simple. Once you sign the contract, we’re ready to get started! At this point, you are now considered an Epcon Communities Franchise Builder and have access to our proven homebuilding business blueprint, training and advice to get you on your way to developing homes.

The Process That Has Made Us a Top 50 U.S. Home Builder for More Than 30 YearsThe Epcon Homebuilding Franchise gives builders access to our successful Business Blueprint. Since our founding, Epcon and its Franchise Builders have developed nearly 400 communities and built more than 30,000 homes in 28 states, and each year more and more homebuilders are joining. One thing our builders love is the exclusive access to our business blueprint. We share what’s made us successful in the homebuilding business to position you to own your local market and solidify your place as a respected, trusted brand.

What exactly is a Business Blueprint? It is a detailed resource created by Epcon that documents the development and construction processes and operations you need to start and develop your homebuilding project. You will start out with detailed scopes of work and then receive benefits such as our expert guidance, prototype drawings, sample sites and more to help you build smarter and scale faster.

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How it Works

As an Epcon Franchise Builder, you’ll receive exclusive access to the business blueprint that’s made us a top 50 home builder year-after-year.

Capitalize on an underserved market• Appeal to the 55+ home buyer with copyrighted, tested home designs and

layouts based on continual market research • Offer fantastic amenities that resonate with the 55+ lifestyle• Adaptable designs to appeal to virtually every region of the country

Tap into the support and experience of a national builder• Expert advice on every aspect of homebuilding – from site selection

to closeout• Grow as fast as you want with no long-term agreements• Peer network of other Franchise Builders and educational opportunities

Presell homes before they are built• 3D tours, virtual tours and much more• Lead generation support • Sales training to win over buyers

Build 2x faster than industry average*• Documented development, construction and quality assurance processes• Direct access to financial guidance, calculators and tools• Onsite construction training

Scale quickly with greater purchasing power• National network of suppliers• Economies of scale of a top 50 builder• Marketing co-op

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What are the Benefits?

Every builder has the opportunity to tap into our knowledge, market research, network of builders and proven systems. Our blueprint can help you quickly and efficiently build communities for the 55+ demographic. Whether you are a new builder or one with years of experience our Business Blueprint can provide valuable information. Our blueprint offers:

Extensive Knowledge of the 55+ Housing MarketSince our founding in 1986 we have been building homes and entire communities that appeal to the most underserved market in the industry. We know entering a new market can be intimidating as there are many factors to consider. However, with our extensive knowledge and information on the 55+ housing market you’ll be well prepared to enter the market with confidence.

Market ResearchThe 55+ demographic has their own unique needs and desires for their homes. Since every demographic is different, research is a necessary step of the process. However, completing your own research can be time consuming and not to mention expensive. A great benefit for you is that Epcon has already completed the research. Every Franchise Builder gains access to this data in the Business Blueprint so you can build directly for the core buyers’ needs.

National Network of Epcon Franchise BuildersEntering a new market brings many challenges and can result in situations for which you are not prepared. With Epcon, you receive access to all of our Franchise Builders located across the United States. You can hear stories, share tips, and learn how others dealt with challenges you may be facing. Talking with a builder like you can provide creative solutions to help you overcome roadblocks.

Floor Plans, Systems and ResourcesOur Business Blueprint gives you access to all the materials and resources you’ll need to build the homes that buyers will love. You’ll receive our market-tested floor plans, list of national vendor partners, marketing materials and sales training. We even include virtual tours to allow the potential buyer to see what your home looks like before it is built. We also provide webinars, research and updated materials throughout the year to keep you current on trends and changes in the industry.

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“One of the things that I love about it is that there has never been a time that I have reached out to Epcon that they haven’t been responsive. They were there for me and walked me through the process in every aspect that they can.”

Becoming an Epcon Franchise Builder is a serious commitment, and you will probably have questions prior to joining. A meeting with an Epcon representative and review of our Franchise Disclosure Document (FDD) will answer most of your questions, but as a starting point, here are the answers to some questions we are frequently asked.

Frequently Asked QuestionsWhat is the Franchise Disclosure Document and how is it different from the Franchise Agreement?

As part of the inquiry process, you will be provided a copy of our annual Franchise Disclosure Document (FDD). The FDD is a set of 23 disclosures called Items 1-23, the contents of which are mandated by the Federal Trade Commission (“FTC”). These disclosures describe many details about the Epcon Communities Franchise opportunity such as the costs, the obligations of the franchisor and franchisee, and the benefits of the system. The FDD is not a contract. It is similar to a prospectus. Certain states also require additional disclosure language to be included along with the required FTC disclosures. Item 22 contains a list of the contracts which you will likely enter into with us should you be awarded a franchise. The Franchise Agreement is one of those contracts and is an exhibit to the FDD. It is important to note that the Franchise Agreement is in fact a stand-alone document, and is the primary contract that will govern the franchise relationship. Other related contracts may be required, samples of which are also contained in the FDD.

What are the initial/upfront fees?

Detailed information about the upfront fees associated with an Epcon Communities Franchise are located in Item 5 in the FDD.

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What does Epcon provide as support to me once I sign a Franchise Agreement?

Epcon Communities Franchising exists first and foremost to support our franchisees. Our team of franchising, real estate, and design professionals are here to help our franchisees through the real estate acquisition, site development, construction and sales process. Additionally, our Franchising team has access to the professionals and resources used to design and develop Epcon’s corporately-owned communities in Ohio and North Carolina, so we are collaborating to create, execute and perfect the Epcon vision every day. In addition to the direct support and collaboration you will receive from Epcon Communities Franchising, you will also gain access to our many franchisees who can share best practices and unique design resources to help you along the way. Item 11 in the FDD details Epcon’s assistance, advertising, computer systems and training provided to franchisees. To start, you will visit our headquarters in Dublin, Ohio, to meet our team and learn more about the company, what to expect, and next steps. We will also provide you an Operations Manual, and several additional manuals containing information related to the operation of the Epcon Communities Development System. Training programs currently being offered include New Franchisee Orientation, Sales and Marketing Orientation, Construction Training, the Epcon National Conference, additional sales trainings & regional meetings.

Once I commit to a franchise with Epcon, will I have a protected territory or a first right of refusal?

Item 12 in the FDD contains detailed information on territory rights. Epcon does not offer a first right of refusal but does offer the opportunity to sign Market Area Agreements to protect areas to be developed. At the time the Franchise Agreement is signed, a Market Area Agreement is also signed. The Market Area Agreement is based on population as well as other factors, and protects the geographic area surrounding the project development site that will generate the most purchase support (typically 60%-70%) for the development. Generally speaking, a market area will roughly encompass a radius between 3 and 12 miles from the site, but will take into consideration existing natural and man-made boundaries in the area, as well as other franchisees’ protected market areas.

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Does Epcon require me to work full time in the franchise business?

Item 15 outlines requirements with regard to the obligation to participate in the actual operation of the franchise business. Epcon does NOT require the franchisee to participate personally in a full time capacity in the development and construction of the Epcon Communities development business. Epcon does, however, recommend that an individual with an ownership interest in the company directly participate in the day-to-day operations.

I currently build another residential housing product. Do I have to give up my current business?

Item 16 details the restrictions on what franchisees may sell. While we do not generally restrict the type of goods or services that a franchisee may offer, we do require that Franchisees not modify the Epcon Communities Development System (except as necessary to comply with building codes and permits, and local, state and federal laws). We also prohibit, except in limited circumstances, the development and construction of residential homes SUBSTANTIALLY SIMILAR to our architectural plans and specifications for residential dwellings.

How much money can I expect to make by investing in an Epcon Communities Franchise?

Item 19 contains the Financial Performance Representations pertaining to the Epcon Franchise opportunity. We do not estimate the revenue or income that a franchisee might realize in the development and marketing of its Epcon Communities project. We highly recommend you speak to our current franchisee builders during your due diligence phase to discuss their business experiences with the Epcon system. We cannot make any financial performance representations other than those contained in Item 19.

May I speak with other Epcon Franchise Builders about their experience?

Yes, in fact, we encourage you to do so. Exhibit P in the FDD contains a list of all current Franchise Builders, their locations and their phone numbers.

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Is there a way to sustain our business’ viability in different economic cycles?

Yes, and sustaining your business’ viability in different economic cycles comes down to two main points: diversification and financial strength of the segment.

Diversification is important to sustaining the viability of your business whether you’re a builder, developer or investor. Diversifying the projects you are involved in is a great way to see success no matter the current economic situation.

Another way to sustain your business’ viability is to evaluate the financial strength of the target market. In the case of Epcon Franchising, our homes appeal to the 55+ active adult market. Baby Boomers have incredible financial strength and security, which means our core home buyers are not as heavily impacted by economic downturns. This demographic of buyers has already made their money and want to spend it; they don’t worry as much about interest rate fluctuation and other economic factors. In fact, people age 55+ represent 48 trillion dollars in net worth¹. This is the highest net worth collectively in human history. So, the sheer buying power of this segment will help stabilize market fluctuations and provide a more reliable source for purchasing homes even during difficult economic times.

Are there opportunities to capitalize on the 55+ market?

Yes, absolutely. The 55+ market is the largest and most underserved segment of home buyers at this point in time. In fact, Metrostudy estimates that the demand for low-maintenance, single family homes is far exceeding supply. And since national builders have not yet flooded the market, now is an excellent time for investors and home builders to target this market.

Additionally, the 55+ housing market shows steady growth. The National Association of Home Builders states that the 55+ housing market has shown year-over-year gains every year since 2012, and we don’t expect that to stop anytime soon.

When you become an Epcon Franchise Builder you can build homes that appeal to the 55+ home buyer with tested home designs and layouts based on our market research. We offer fantastic amenities that resonate with the 55+ lifestyle, and designs that appeal to every region of the country. Based on more than 30 years of meeting the needs of this audience, Epcon provides the optimal turnkey process to take advantage of the 55+ market.

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What can I do to offset supply cost increases and labor shortages?

The best way to offset supply cost increases and labor shortages is to take advantage of a franchising system where you can become a part of a top 50 U.S. home builder. By doing this you leverage our economies of scale and outstanding contractor relationships that would otherwise be out of reach to a smaller builder.

We help offset your supply costs by giving you exclusive access to distributors who we already have a great relationship with and allow us to buy in bulk.

Our proven processes and systems allow contractors to complete work more efficiently and effectively. Because we develop communities that provide consistent work, contractors are more likely to pick these jobs over a big, one-time special project that requires additional research, energy and time. Another benefit is that because the construction process is similar for all of our homes, we have contractors that are very familiar with our approach and can build components offsite during poor weather and then bring them to the job site. All of these factors aid in more production and contribute to the bottom line that make Epcon an employer of choice for the best contractors.

Is there a way to compete more effectively with national builders?

Yes, with Epcon Franchising you can compete more effectively with national builders by becoming a part of one. And the great thing about our system is you still get to retain the individuality that comes with owning your own business and brand.

Instead of being acquired by a national brand, you are just acquiring the knowledge of a top 50 builder and our more than 30 years of experience. You are able to tap into the national builder system and take advantage of everything that national builders do well. You get the proven plans and systems to streamline your processes, access to products with discounted pricing and the brand recognition that give home buyers security since you have the Epcon name associated with your brand.

Another benefit is that many lower volume home builders are only as good as the people you can hire. Now you can take advantage of the purchasing advantages, Epcon’s years’ of experience, strong systems/processes as well as our sales and marketing expertise. With Epcon, you get expert advice on every aspect of homebuilding, from site selection to closeout.

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How do I scale faster to reach my business and personal goals?

When wanting to scale faster you have two options. One, you can design, create and implement processes yourself; or two, you can use the processes of a proven business and utilize it to your advantage. The Epcon Homebuilding Franchise helps you scale faster by using a proven, repeatable model to develop entire communities versus building one home at a time. We give our Franchise Builders the plans, tools and resources they need to develop planned communities, allowing you to solidify your position and own your local market. At Epcon, we want you to take advantage of what we’ve learned appealing to the 55+ market for more than 30 years and match it to your business needs and goals.

One of our franchise builders, Scott Lehner with Perfection Builders says it best. “We tried to develop a product on our own. About half way through the process, we read an article in Builder Magazine about Epcon and drove to the nearest community. We learned they’d spent years developing their systems and thought it would be well worth the effort to join a franchise rather than taking years to fine-tune our process.”

What can I do to build smarter and more cost effectively?

Building smarter and more cost effectively is all about turnover time. With Epcon’s turnkey systems, you can get a home turned over to the buyer in as little as 110 days. This allows you to build more, sell more and save money along the way.

Our systems allow you to always build quality homes while also being extremely cost effective. One way we do this is by investing in a good quality assurance (QA) program. With a well-defined QA program, you can maintain construction quality, customer satisfaction and brand integrity – all things that help cut costs and build smarter. In fact, according to a study by IBACOS, an effective QA program could result in a 6:1 ROI. This study found that the average builder could save $7,200 per house by investing about $1,200 per house up front.

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Still have unanswered questions? We’re here to help!

Give us a call at 888.909.2430.

How are national builders able to pre-sell homes before they’re built?

The best way to pre-sell homes before they are built is to have a proven marketing program and sales training process. We have over 30 years’ experience crafting these programs and processes for you to utilize when developing your own communities.Pre-selling homes is a process that starts early. It involves targeting the right individuals before you begin building through a lot reservation event to drive interest even before construction begins. From there, it’s about maintaining relationships, finding new potential home buyers, and marketing effectively. And Epcon has the processes in place that you can use to sell out before production is even completed.

Epcon also assists with identifying the perfect sales person or people. We have developed the blueprint of the perfect sales associate and help you with job descriptions and interview questions to bring these people onboard. Once hired, Epcon provides detailed training approaches and the process to close 2-3 homes per month. This has helped our Franchise Builders sign contracts before the construction of homes begins.

Disclaimer: The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of franchise. We do not offer franchises in jurisdictions where we are not registered (or exempt from registration). Epcon Communities Franchising, Inc. 500 Stonehenge Parkway, Dublin, Ohio 43017. Minnesota Franchise Registration No. F-3531.