What are some defaults under the Precision Door Service Development Agreement that cannot be cured?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement ("DA") (unless otherwise specified | Summary | |
|---|---|---|---|
| g. | "Cause" defined - defaults which can be cured | Section 6 | 120 days to cure a development schedule default; 30 days to satisfy a final judgment, to dismiss a suit to foreclose any lien or mortgage against the premises or any equipment of the Business or to remedy other defaults that are curable. |
| h. | "Cause" defined - defaults which cannot be cured | Section 6 | Bankruptcy o |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 72–80)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, certain defaults under the Development Agreement cannot be cured. These include situations where the franchisee experiences bankruptcy or insolvency. Additionally, if there is an execution against the franchisee's business or property, or if real or personal property is sold after a levy, these defaults are also considered incurable.
These incurable defaults have significant implications for a prospective Precision Door Service franchisee. If any of these events occur, Precision Door Service has the right to terminate the Development Agreement immediately, without providing an opportunity for the franchisee to rectify the situation. This could result in the loss of the franchise and any associated investments.
It is important for potential franchisees to understand these terms and assess their financial stability and risk tolerance before entering into a Development Agreement with Precision Door Service. Maintaining a solid financial footing and avoiding circumstances that could lead to bankruptcy, executions, or property levies is crucial for preserving the franchise and ensuring long-term success. Franchisees should consult with legal and financial advisors to fully understand the implications of these incurable defaults and to develop strategies for mitigating these risks.