Is Precision Door Service considered a Securitization Entity?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
f Neighborly Issuer LLC (the "Issuer"), which is a special purpose Delaware limited liability company and a direct, wholly owned subsidiary of Neighborly SPV Guarantor LLC (the "SPV Guarantor"), which is a special purpose Delaware limited liability company that is an indirect, wholly owned subsidiary of Neighborly (the "Manager").
Assetco's subsidiaries are comprised of a number of franchisors and related supporting businesses operating in the US and internationally and include the following businesses: Aire Serv SPV LLC, Mr. Electric SPV LLC, The Grounds Guys SPV LLC, Rainbow International SPV LLC, Glass Doctor SPV LLC, Mr. Appliance SPV LLC, Mr. Rooter SPV LLC, Molly Maid SPV LLC, Mr. Handyman SPV LLC, Five Star Painting SPV LLC, Window Genie SPV LLC, Real Property Management SPV LLC, Mosquito Joe SPV LLC, HouseMaster SPV LLC, Dryer Vent Wizard SPV LLC, ShelfGenie SPV LLC, Precision Door Service SPV LLC, Junk King SPV LLC, and Lawn Pride SPV LLC (each an "SPV Franchisor" and together the "SPV Franchisors") and ProTradeNet SPV LLC, Neighborly Service Solutions SPV LLC, Back Office SPV LLC, G-O Manufacturing SPV LLC, Zorware SPV LLC, NBLY Co Ops CO SPV LLC, NBLY Co Ops WA SPV LLC, NBLY Co Ops AZ SPV LLC, NBLY Co Ops IN SPV LLC, Trench Right SPV LLC, Trench Right WA SPV LLC, Dig Boss SPV LLC, NBLY Logistics SPV LLC, and Pimlico SPV Limited (each a "Non-Franchisor SPV Entity" and together the "Non-Franchisor SPV Entities"), each of which is a direct, wholly owned subsidiary of Assetco.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, Precision Door Service SPV LLC is considered a Securitization Entity. Specifically, the FDD identifies several entities as Securitization Entities, including Neighborly SPV Guarantor LLC, Neighborly Issuer LLC, and Neighborly Assetco LLC, along with SPV Franchisors and Non-Franchisor SPV Entities. Precision Door Service SPV LLC is explicitly listed among the SPV Franchisors. These Securitization Entities are involved in various financial transactions, including the issuance of Senior Notes and Class A-1 Notes, which are secured by their assets.
These Securitization Entities, including Precision Door Service SPV LLC, are bankruptcy remote entities that own substantial intellectual property, such as tradenames, franchise agreements, and national account relationships. The financial structure ensures that payments on the Senior Notes and Class A-1 Notes take priority over distributions to the Manager, with weekly segregation of funds to cover quarterly interest and principal payments. This setup is designed to provide security to the noteholders and maintain compliance with debt-service coverage covenants.
For a prospective Precision Door Service franchisee, understanding the securitization structure is crucial. It indicates that the franchise's assets and revenue streams are part of a larger financial arrangement that supports the franchisor's debt obligations. While this structure can provide financial stability to the franchisor, it also means that the franchise's operations are subject to certain financial constraints and oversight to ensure compliance with the terms of the securitization agreements. Franchisees should be aware of how these financial arrangements might impact the franchisor's decision-making and its ability to support the franchise system.