Who is designated as the Manager to administer the MAP Fund for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
We collect a MAP Fee from you for the MAP Fund equal to 2% of monthly Gross Sales, as provided in Item 6. (Franchise Agreement, Section 8.C)
We have established the MAP fund and have designated the Manager (i.e., Neighborly Company) to administer the MAP Fund. The MAP Fund is not a trust or escrow account, and neither we nor the Manager will have any fiduciary obligations with respect to the MAP Fund. If all of the MAP Fees are not spent in the fiscal year in which they accrue, the remaining amounts will be retained in the MAP Fund for use in the following years. The Manager may use the MAP Fund for various purposes related to the Precision Garage Door Service® franchise system, including, but not limited to, (1) broadcast, print or digital advertising; (2) the creation, development and production of advertising and promotional materials (i.e., print ads, digital, radio, film and television commercials, video, digital ads, direct mail pieces, and other print advertising); (3) any marketing or related research and development; (4) advertising and marketing expenses, including product research and development, services provided by advertising agencies, public relations firms or other marketing, research or consulting firms or agencies; (5) the development, licensing and/or use of any tools and platforms in connection with marketing, advertising and promotional activities; and (6) expenses, administrative costs and overhead we or the Manager may incur in activities related to maintaining, administering, directing, and conducting the MAP Fund and its programs, including compensation to employees or any other individual or entity providing services to the MAP Fund. (Franchise Agreement, Section 7.A)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 50–63)
What This Means (2025 FDD)
According to the 2025 Precision Door Service FDD, the Manager designated to administer the Marketing, Advertising and Promotion (MAP) Fund is Neighborly Company. The MAP Fund is supported by a MAP Fee, which is 2% of monthly Gross Sales, collected from franchisees as detailed in Item 6 of the Franchise Agreement.
Precision Door Service emphasizes that the MAP Fund is not a trust or escrow account, and neither Precision Door Service nor Neighborly Company, as the Manager, has any fiduciary obligations regarding the fund. This means that the fund is not legally required to be managed in the franchisees' best financial interests, which is a notable distinction for franchisees to consider.
Neighborly Company, as the Manager, has discretion over how the MAP Fund is used. These uses include broadcast, print, and digital advertising, creation of promotional materials, marketing research and development, and administrative expenses related to managing the fund. The Manager can also collaborate with advertising funds from other franchise systems affiliated with Precision Door Service. However, there is no guarantee that these collaborations will benefit Precision Door Service franchisees proportionately to the benefits received by other participating franchises. This introduces a potential risk that marketing efforts may not directly or equally benefit all franchisees contributing to the fund.
Precision Door Service also retains the right to change the entity administering the MAP Fund, potentially incorporating it or operating it through another entity separate from themselves or the Manager. If the MAP Fund is terminated, franchisees will receive a pro-rata portion of the remaining funds based on their contributions. This provides some financial protection to franchisees, ensuring they receive a return of their contributions should the fund be discontinued.