What was the allowance at the beginning of the period for Precision Door Service's Development Agreement in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Months 0-12 | Months 13-18 | Months 19 - 24 | Months 25- end | |
|---|---|---|---|---|
| Minimum | $0 | $1,000 - $4,000 | $1,500 - $5,500 | $2,000 - $7,000 |
| License Fee | ||||
| Minimum Monthly License Fee Calculation Based on SFHUD | Minimum Monthly License Fee | |||
| SFHUD | Months 0 - 12 | Months 13- 18 | Months 19 - 24 | Months 25- end |
| 0 – 150,000 | $0 | $1,000 | $1,500 | $2,000 |
| 151,000 – 300,000 | $0 | $1,500 | $2,000 | $2,500 |
| 300,001 – 500,000* | $0 | $2,000 | $2,500 | $3,000 |
| 500,001 – 1,000,000* | $0 | $3,000 | $4,000 | $5,000 |
| Minimum Monthly License Fee Calculation Based on SFHUD | Minimum Monthly License Fee | |||
| SFHUD | Months 0 - 12 | Months 13- 18 | Months 19 - 24 | Months 25- end |
| 1,000,001 and | $0 | $5,000 | $6,000 | $7,000 |
| Above* |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the minimum monthly license fee for a Precision Door Service Development Agreement during months 0-12 is $0, regardless of the SFHUD (Single Family Housing and Urban Development) value. This applies to all SFHUD ranges listed in the table, from 0-150,000 to 1,000,001 and above.
This means that at the beginning of the Development Agreement, specifically during the first year, the franchisee does not have a minimum monthly license fee obligation to Precision Door Service. This initial period could be beneficial for new developers as it allows them time to establish their operations without the immediate pressure of meeting a minimum license fee.
However, after the initial 12 months, the minimum monthly license fee becomes applicable and varies based on the SFHUD. For example, if the SFHUD is between 0 and 150,000, the minimum monthly license fee is $1,000 during months 13-18, increasing to $1,500 during months 19-24, and further to $2,000 from month 25 onwards. The fees increase with higher SFHUD values, potentially reflecting the market size and opportunity in larger territories.