Does the Precision Door Service franchise agreement outline any prohibited actions for franchisees?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
- P. Ethical Business Conduct. You agree to adhere to good business practices, observing high standards of honesty, integrity, fair dealing and ethical business conduct and good faith in all business dealings with Customers, vendors, your employees, our corporate employees, and all other PRECISION GARAGE DOOR SERVICE® franchisees. You must not engage in deceptive, misleading or unethical practices or conduct that may have a negative impact on the reputation and goodwill associated with the Marks.
- Q. Crisis Situations. In the interest of protecting the PRECISION GARAGE DOOR SERVICE® brand, Marks and the System, we have the sole and absolute right to determine a response, including what steps will be taken and what communications will be made, in instances of a Crisis, and you agree to comply with and implement our directions in response to a Crisis. "Crisis" means an event or development that negatively impacts the PRECISION GARAGE DOOR SERVICE® brand or System in such a way that we determine may cause substantial harm or injury to the Marks, System, the Intellectual Property associated with the System, or the reputation or image of the PRECISION GARAGE DOOR SERVICE® brand.
Except as otherwise approved in writing by Franchisor, you may not, directly or indirectly, through, on behalf of, or in conjunction with, any other person, partnership, or legal entity, own, maintain, operate, or engage or participate in, inure benefit to, or have any financial interest, either as an officer, agent, employee, principal, partner, director, shareholder or any other individual or representative capacity, in any corporation, partnership or other legal entity that engages in any business that is the same as or similar to the Franchise, or is otherwise in competition with the business of Franchisor or Franchisor's franchisees, that engages in the distribution of similar products, services and/or equipment and that is located (a) anywhere, while the Franchise Agreement is in effect or (b) (i) within the territory specified on the Data Sheet to the Franchise Agreement, (ii) within a 35-mile radius of the outer boundary of such territory, or (iii) inside the territory of another Precision Garage Door Service® business, in each case during a period of two (2) years commencing with the earlier of the termination of the Franchise Agreement or the date on which you cease to be associated with Franchisee (or the individual who is the principal of a legal entity identified as Franchisee) whether because of a termination of an employment arrangement or marriage or otherwise, which period shall be extended by any period of noncompliance.
In addition, you agree that during the term of this Agreement and for one year thereafter, you will not, without our prior written consent, directly or indirectly, for yourself or on behalf of any other person, divert, or attempt to divert, any business or customer of the Business or any other PRECISION GARAGE DOOR SERVICE® Business away from the System.
You and each of your Owners represent and warrant to us that: (i) neither you nor any Owner is named, either directly or by an alias, pseudonym or nickname, on the lists of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, the franchise agreement outlines several prohibited actions for franchisees. These include engaging in any business that competes with Precision Door Service, both during the franchise term and for a period of time after termination. Specifically, franchisees are restricted from operating a similar business (a) anywhere while the Franchise Agreement is in effect, or (b) for two years after termination (i) within their specified territory, (ii) within a 35-mile radius of that territory, or (iii) inside another Precision Door Service territory.
Additionally, franchisees are prohibited from soliciting or diverting customers away from the Precision Door Service system, both during the term of the agreement and for one year after. Franchisees must also adhere to ethical business practices, maintaining high standards of honesty and fair dealing, and must not engage in deceptive or unethical practices that could harm the Precision Door Service brand.
Furthermore, franchisees must comply with Precision Door Service's directions during crisis situations that could negatively impact the brand. Franchisees also warrant that they and their owners are not on any U.S. Treasury Department lists of "Specially Designated Nationals" or "Blocked Persons" and will not violate any laws against corrupt business practices, money laundering, or supporting terrorist activities. Failing to meet minimum performance standards, such as Gross Sales and Net Promoter Score, can also lead to consequences under the franchise agreement.