What was the amount of franchise sales fees for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
0 335,404 (4,769) | $ 2,944,568 168,428 (22,873) | | Total Member's Equity | 3,111,215 | 3,090,123 | | Total liabilities and member's equity | $ 3,198,931 | $ 3,161,602 |
Combined Statements of Operations and Comprehensive Income ($000's)
| For the years ended December 31, | 2023 | (Restated) 2022 |
|---|---|---|
| Revenues and income | ||
| Franchise service fees | $ 169,842 | 152,248 |
| Synthetic royalties and master license fees | 28,705 | 22,879 |
| Franchi |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the franchise sales fees for the year 2023 were $36,783. This figure represents the revenue Precision Door Service recognized from the sale of new franchise territories and additional territories to existing franchisees during that year. Franchise sales fees are a key revenue stream for Precision Door Service, reflecting the expansion of its franchise network.
For a prospective franchisee, understanding the franchise sales fees is important as it provides insight into the franchisor's revenue model and growth strategy. A higher franchise sales fee revenue in a particular year may indicate strong franchise expansion, which could translate to increased brand awareness and potentially more support and resources for franchisees. However, it is also important to consider the trend over multiple years to assess the sustainability of this growth.
It's worth noting that these fees are distinct from the initial franchise fee that a new franchisee pays to join the Precision Door Service system. The franchise sales fees reported in the financial statements reflect the revenue recognized by the franchisor over time, while the initial franchise fee is typically a one-time payment made by the franchisee upon signing the franchise agreement. Reviewing these figures in conjunction with other financial data, such as franchise service fees and advertising revenue, can provide a comprehensive view of Precision Door Service's financial health and stability.