Who determines the use of the monies in the MAP Fund for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The Manager determines the use of the monies in the MAP Fund. The Manager is not required to spend any particular amount on marketing, advertising or promotion in the area in which your Business is located. The Manager and the MAP Fund may collaborate with the advertising funds of certain franchise systems affiliated with us. There can be no assurance that the MAP Fund's participation in these collaborations and joint efforts will benefit the franchised businesses using the Marks proportionately or equivalently to the benefits received by the other franchised businesses or the other franchised systems affiliated with us that also participate. The Manager oversees the advertising programs and uses the MAP Fund to create marketing materials and conduct national, regional or local advertising. We will contribute to the MAP Fund amounts equal to your required percentage for each similarly situated company-owned and affiliate-owned Precision Garage Door Service® businesses. From time to time we may contribute to the MAP Fund some amounts paid to us by outside suppliers. The Manager will prepare an annual unaudited accounting of the MAP Fund and will make it available for your review upon your written request. The Manager has its own in-house marketing and advertising production capabilities, but also may use an outside national, regional, or local agency. Neither we nor the Manager will use any of the advertising funds for the solicitation of franchise sales, but any marketing materials the Manager produces may designate "Franchises Available."
We reserve the right to cause the MAP Fund to be incorporated or operated through another entity separate from us or the Manager at such time as we may deem appropriate, and any such successor entity will have all our rights and duties with respect to the MAP Fund. We or the Manager may use collection agents and institute legal proceedings at the MAP Fund's expense to collect MAP Fund contributions. We may also forgive, waive, settle, and compromise all claims by or against the MAP Fund. If we terminate the MAP Fund, we will refund to you your pro-rata portion of any amounts remaining in the MAP Fund, based on your contributions 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 determines how the monies in the MAP Fund are used. The Manager is identified as Neighborly Company. The MAP Fund is funded through a MAP Fee, which is 2% of monthly Gross Sales.
The Manager has broad discretion in using the MAP Fund for the Precision Garage Door Service franchise system. These uses include broadcast, print, and digital advertising; creating advertising and promotional materials; marketing research and development; advertising and marketing expenses; developing and licensing marketing tools and platforms; and covering administrative costs related to the MAP Fund.
Precision Door Service retains the right to modify the structure of the MAP Fund. They can incorporate it or operate it through a separate entity. They can also use collection agents or legal proceedings to collect MAP Fund contributions, and they can forgive, waive, settle, or compromise claims related to the MAP Fund. If the MAP Fund is terminated, franchisees will receive a pro-rata refund of any remaining amounts based on their contributions.
The FDD specifies that the MAP Fund is not a trust or escrow account, and neither Precision Door Service nor the Manager has any fiduciary obligations regarding the fund. Any unspent MAP Fees at the end of a fiscal year are retained in the MAP Fund for use in subsequent years. While the PDS Franchise Association Advisory Council can present ideas for advertising, Precision Door Service ultimately directs all advertising, marketing, and promotional activities.