What actions are considered a violation of the non-compete agreement for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
intervening impending proceedings to seek the entry of protective orders or other appropriate relief. Nothing in this Agreement shall be construed to interfere with a party's obligations to comply with lawful court orders; however, no disclosure of Confidential Information by a party pursuant thereto shall be deemed to place the Confidential Information in the public domain or to relieve the party from the future performance of all its confidentiality obligations under this Agreement, absent express orders of the court to the contrary.
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- Covenant Not to Compete. Except as otherwise approved in writing by Franchisor, you may not, directly or indirectly, through, on behalf of, or in conjunction with, any other person, partnership, or legal entity, own, maintain, operate, or engage or participate in, inure benefit to, or have any financial interest, either as an officer, agent, employee, principal, partner, director, shareholder or any other individual or representative capacity, in any corporation, partnership or other legal entity that engages in any business that is the same as or similar to the Franchise, or is otherwise in competition with the business of Franchisor or Franchisor's franchisees, that engages in the distribution of similar products, services and/or equipment and that is located (a) anywhere, while the Franchise Agreement is in effect or (b) (i) within the territory specified on the Data Sheet to the Franchise Agreement, (ii) within a 35-mile radius of the outer boundary of such territory, or (iii) inside the territory of another Precision Garage Door Service® business, in each case during a period of two (2) years commencing with the earlier of the termination of the Franchise Agreement or the date on which you cease to be
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 FDD for Precision Door Service, franchisees are restricted from engaging in competitive activities unless explicitly approved by the franchisor in writing. Specifically, a franchisee cannot directly or indirectly own, maintain, operate, or participate in any business that is the same as or similar to the Precision Door Service business. This includes involvement as an officer, agent, employee, principal, partner, director, shareholder, or in any other representative capacity.
This non-compete extends to any entity that competes with Precision Door Service or its franchisees, engages in the distribution of similar products, services, or equipment, and is located within a defined area. The FDD does not specify the geographic scope of this restriction, but it is designed to protect Precision Door Service's market and customer base.
The franchise agreement specifies that each covenant within the non-compete section is considered independent. If any part of the non-compete is successfully challenged, the provision will be modified to provide the maximum coverage deemed reasonable and necessary to protect Precision Door Service's interests. Unauthorized disclosure following the execution of the agreement may result in legal action for injunctive relief and damages.