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Epcon Communities Franchise ProfileReal Estate Franchises > Property Management |
What Are the Initial Investment Requirements for an Epcon Communities Franchise?
To open an Epcon Communities franchise, you need to prepare for a significant initial investment ranging from $1,113,725 to $5,054,640. This includes an initial franchise fee of $80,000. Additionally, you should have cash reserves between $1,113,725 and $1,495,725 and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the venture.
What Are the Ongoing Fees Associated with an Epcon Communities Franchise?
As an Epcon Communities franchisee, you will incur ongoing fees that include a royalty fee of 2% on gross sales and a marketing fee of $625. These fees contribute to the overall operational costs of running your franchise and are essential for maintaining brand presence and support. Being aware of these ongoing expenses will help you manage your budget effectively as you grow your business.
What Is the Financial Performance Potential for Epcon Communities Franchisees?
Epcon Communities franchisees can expect varying revenue outcomes, with average annual revenue per unit reported at $133,000 and a median of $475,542. The lowest annual revenue recorded is $209,667, while the highest can reach $1,071,034. This range highlights the potential for profitability, but it also emphasizes the importance of location and management practices in achieving financial success.
What Is the Breakeven Timeline for an Epcon Communities Franchise?
New franchisees can anticipate a breakeven period of approximately 24 months, with an investment payback period of around 36 months. This timeline is crucial for planning your financial strategy and understanding when you can expect to recover your initial investment. Being prepared for the initial phase of operation will help you navigate the challenges of establishing your franchise.
Epcon Communities Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Epcon Communities Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 83 | 90 | 85 |
| Net Change YoY | 7 | -5 | |
| Franchised Units | 60 | 70 | 72 |
| Net Change YoY | 10 | 2 | |
| Corporate Units | 23 | 20 | 13 |
| Net Change YoY | -3 | -7 |
Initial Investment
The initial investment to open an Epcon Communities franchise ranges from $1,113,725 to $5,054,640. This includes the franchise fee of $80,000, which is a one-time payment to secure the rights to operate under the Epcon brand. Potential franchisees should also consider additional costs such as real estate, construction, and equipment when calculating their total investment.
Financial Performance
Epcon Communities franchises showcase significant revenue potential, with average annual revenue per unit at $133,000 and a median of $475,542. The lowest annual revenue recorded is $209,667, while the highest reaches $1,071,034. These figures indicate a robust earning potential, making it an attractive option for investors looking for profitable opportunities in the real estate sector.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 2.00% of gross sales, along with a marketing fee of $625. These fees contribute to the ongoing support and brand promotion provided by the franchisor, ensuring that franchisees benefit from a strong marketing presence and operational guidance.
Required Financials
To qualify for an Epcon Communities franchise, potential franchisees must have a net worth between $500,000 and $1,000,000. Additionally, they should have access to liquid cash ranging from $1,113,725 to $1,495,725 to cover initial costs and operational expenses during the start-up phase.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 24 months of operation, with an investment payback period of around 36 months. This timeline provides insight into the financial viability of the franchise, allowing investors to plan their financial strategies effectively.
Growth and Expansion
Since 2020, Epcon Communities has shown steady growth, increasing from 60 franchised units to 72 by 2022. The company also operates corporate units, which have decreased from 23 to 13 during the same period. This trend reflects a strategic focus on franchising as a means of expansion, presenting opportunities for new investors to join a growing network.
Frequently Asked Questions
The initial investment for an Epcon Communities franchise ranges from $1,113,725 to $5,054,640, which includes the franchise fee and other startup costs.