When does the Precision Door Service franchise agreement become effective?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
cash used in financing activities | (265,744 ) | (100,999 ) | | | Net decrease in cash and restricted cash | (1,003 ) | (762 ) | | | Cash and restricted cash - Beginning of period | 5,740 | 6,502 | | | Cash and restricted cash - End of period | $4,737 $ | 5,740 | | | Supplemental cash flow disclosures: | | | | | Non-cash contribution of equity | $101,756 $ | 14,670 | | | Balance at beginning of period | $68,226 $ | 62,393 | | |---|---|---|---| | Fees received from franchise owners | 47,447 | 24,518 | | | Franchise sales revenue recognized | (36,783 ) | (13,642 ) | | | Contributed from Manager | 4,386 | | - | | Other deferred revenue recognized | 531 | (5,043 ) | | | Balance at end of period | 83,807 | 68,226 | | | Less: current portion | 13,631 | 10,604 | | | Deferred revenue, noncurrent | $70,176 $ | 57,622 | |
Exhibit A to the Assignment and Consent Agreement
Legacy Transfer Rider to Franchise Agreement
| This Legacy Transfer Rider to Franchise Agreement (this "Rider") is entered into by and between |
|---|
| PRECISION DOOR SERVICE SPV LLC, a Delaware limited liability company having a principal place |
| of business at 2395 Washington Avenue, Suite 5, Titusville, Florida 32780 ("Franchisor" |
| or "we"), and |
| , |
| individually, |
| having |
| an |
| address |
| of |
| ("Franchisee" or "you"), as of the Effective Date of the Franchise Agreement (as defined below). |
| A. |
| Simultaneously herewith, Franchisor and Franchisee are entering into a Franchise |
| Agreement pursuant to which Franchisee has the right and obligation to operate a Precision Garage Door |
| franchised business (the "Business") located at (the |
| "Franchise Agreement"). |
B.
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the effective date of the Precision Door Service franchise agreement is referenced in the context of a Legacy Transfer Rider. Specifically, in the Legacy Transfer Rider to Franchise Agreement, it states that the agreement is entered into as of the Effective Date of the Franchise Agreement. This implies that the franchise agreement becomes effective on a specific date agreed upon by both Precision Door Service and the franchisee.
Additionally, in the Assignment and Consent Agreement, the agreement becomes effective as of the date Precision Door Service signs the agreement. This date is referred to as the "Effective Date". This means the franchise agreement is active once Precision Door Service formally approves and signs the document.
Prospective franchisees should pay close attention to the specific dates outlined in their individual agreements to understand exactly when their rights and obligations under the Precision Door Service franchise agreement begin. The effective date marks the commencement of the franchise relationship and triggers various responsibilities for both the franchisee and Precision Door Service.