What is the fee for a dishonored check or ACH draft for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| up> | $20,000 | ||
|---|---|---|---|
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
| -------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| and for each Franchise Agreement transferred at the same time. | |||
| Training Fee as part of Buyer Commitment Agreement1 | $14,900 | Prior to attending training. | This fee is payable only in the event of a transfer where you and your transferee buyer request that the transferee buyer attend training prior to the closing on the sale of your Business and is in addition to all other transfer requirements. |
| Late Fees1 | $10 per day | On demand | Applies to fees that are overdue. |
| (Franchise | |||
| Agreement) | |||
| Dishonored Check or ACH Draft1 | $50 | On demand | You must pay us for each check returned or ACH draft refused by your financial institution for insufficient funds in your account. |
| Interest1 | 12% on unpaid balances | On demand | Payable on all overdue amounts. The twelve percent (12%) charge is calculated as a per annum rate but may be collected on demand, including weekly or monthly through automatic bank draft. |
| Audit1 | Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees | When you are billed | Payable only if we find an understatement of Gross Sales of 2% or more or if you fail to provide requested information within 30 |
Source: Item 6 — OTHER FEES (FDD pages 28–36)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, if a franchisee's check is returned or an ACH draft is refused due to insufficient funds, Precision Door Service will charge a $50 fee. This fee is due on demand.
This means that franchisees need to ensure they have sufficient funds available when making payments to Precision Door Service via check or ACH transfer. Failing to do so will result in this additional charge. This is a fairly standard practice among franchisors, as it covers the administrative costs associated with handling dishonored payments.
It is important for prospective franchisees to maintain good financial management practices to avoid incurring such fees. Franchisees should also be aware of other fees that may be charged, such as late fees on overdue amounts, which are $10 per day, or interest at a rate of 12% on unpaid balances.