What are the criteria that a Managing Principal of a Precision Door Service franchise must meet?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
y written instrument signed by you and Franchisor, and (ii) is separate from any other agreement regarding conditions to Franchisor's consent to the Transfer or any agreement between Buyer and Seller regarding the Transfer. There are no representations of any kind except as contained herein. This Agreement will be binding upon and inure to the benefit of the parties, their legal representatives, successors, and assigns.
Buyer: By: Name: Title: Date: Owner: An Individual
EXHIBIT M-1
PRIVATE EQUITY ADDENDUM TO FRANCHISE AGREEMENT
PRIVATE EQUITY ADDENDUM TO FRANCHISE AGREEMENT
(Precision Door Service)
| Balance as of December 31, 2021 | $1,739,192 | |---|---| | Adjustment to goodwill for unrealized gain/loss on foreign currency | (10,608 ) | | Balance as of December 31, 2022 (Restated) | $1,728,584 | | Adjustment to goodwill for unrealized gain/loss on foreign currency | 4,069 | | Balance as of December 31, 2023 | $1,732,653 | or any other provision of the Franchise Agreement, PE Owner will not be required to devote full-time attention to the Business; provided that the Business shall be at all times under the direct and active supervision and management of a qualified individual (the "Managing Principal") who meets Franchisor's then-current experience, reputation, leadership and education criteria, possesses all required trade and/or business licenses and permits, and completes all required training to Franchisor's satisfaction ("Managing Principal Criteria"). For the avoidance of doubt, the Managing Principal shall not be required to own any equity interest in the Franchisee. PE Owner will not be required to complete Franchisor's training program;
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 Precision Door Service FDD, a Managing Principal is required when a PE Owner (Private Equity Owner) does not devote full-time attention to the business. In this case, the business must be under the direct and active supervision and management of a qualified Managing Principal.
The Managing Principal must meet Precision Door Service's then-current experience, reputation, leadership, and education criteria. They also need to possess all required trade and/or business licenses and permits. Furthermore, the Managing Principal must complete all required training to Precision Door Service's satisfaction.
It is important to note that the Managing Principal is not required to own any equity interest in the franchisee. If the franchisee replaces the Managing Principal, any new Managing Principal must satisfy the Managing Principal Criteria as determined by Precision Door Service. The Managing Principal has primary responsibility for the management of the business and the authority to make all decisions on behalf of the franchisee, and their decisions will bind the franchisee.