What was the amount of fees received from Precision Door Service franchise owners in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ertising. The other deferred revenues not related to the franchise agreements are included in current deferred revenue.
The components of the change in deferred revenue are as follows:
| For the years ended December 31, | 2024 | 2023 |
|---|---|---|
| Balance at beginning of period | $ 83,807 | $ 68,226 |
| Fees received from franchise owners | 35,141 | 47,447 |
| Franchise sales revenue recognized | (33,680) | (36,783) |
| Contributed from Manager | - | 4,386 |
| Other deferred r |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the fees received from franchise owners in 2023 were $47,447. This figure represents the total amount of franchise service fees Precision Door Service collected from its existing franchisees during that year. These fees are typically a percentage of each franchise owner's gross sales, ranging from 2% to 15% of weekly sales, although the exact percentage can vary based on the specific franchise agreement and other factors.
For a prospective Precision Door Service franchisee, this information provides insight into the revenue streams of the franchisor and the financial relationship between Precision Door Service and its franchisees. It's important to note that this figure does not include franchise sales fees from new territories or other sources of revenue, such as sales to third parties or advertising and promotional fund revenue. Instead, it specifically reflects the ongoing fees paid by existing franchisees for the services and support they receive from Precision Door Service.
Understanding the amount of fees received from franchise owners can help a potential franchisee assess the financial stability of Precision Door Service and the importance of these fees to the franchisor's overall revenue. It also highlights the ongoing financial obligation that franchisees have to Precision Door Service, based on their sales performance. This information, combined with other financial data in the FDD, can assist in making an informed decision about investing in a Precision Door Service franchise.