Did Precision Door Service or its franchisor file for bankruptcy?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 3
LITIGATION
Concluded Matters Involving Predecessor:
Precision Holdings of Brevard, Inc. v.
Charan Gohlwar and Tej, Inc.(American Arbitration Association, Brevard County, Case No. 01-19-0000-0863); Charan Gohlwar v.
Precision Holdings of Brevard, Inc. (United State District Court for the Middle District of Florida, Case No. 6:19-cv-00075-JA-GJK).
On January 9, 2019 Predecessor served a notice of incurable breach and termination to its franchisees Charan Gohlwar ("Gohlwar")and Tej, Inc. ("Tej") due to the franchisees having committed an incurable breach of the Phoenix franchise agreement for Violating the Precision Garage Door Service® Uniform Standards for Sales Practices, Violating Precision Garage Door Service® Uniform Standards for Handling Customer Complaints and Honoring Obligations to Customers, Violating Precision Garage Door Service® Uniform Standard for Protecting Their Companies and the Industry, and Violating Precision Garage Door Service® Uniform Standards for Conduct and Practices Aimed at Competitors and Customers, as outlined under the Precision Garage Door Service® Operations Manual.
The franchisees, Gohlwar and Tej, owned and operated five separate Precision Garage Door Service® franchises in the Phoenix
Source: Item 4 — Bankruptcy (FDD pages 23–24)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, Item 3, titled "Litigation," provides information about legal proceedings involving the company's predecessor, Precision Holdings of Brevard, Inc. However, this section focuses on concluded matters such as a case between Precision Holdings of Brevard, Inc. and franchisees Charan Gohlwar and Tej, Inc., initiated due to alleged breaches of the franchise agreement. The document does not explicitly state whether Precision Door Service SPV LLC, its parent companies, predecessors, or affiliates have ever filed for bankruptcy.
Because the FDD does not contain explicit information about bankruptcy filings, prospective franchisees should independently verify the financial stability and litigation history of Precision Door Service, its predecessors, and parent companies through additional due diligence. This could include consulting with a franchise attorney, conducting independent financial investigations, and seeking clarification from the franchisor directly regarding any past or pending bankruptcy filings.
Understanding the financial health and legal background of the franchisor is crucial for making an informed investment decision. While the FDD provides some insight into legal matters, it's essential to gather comprehensive information from various sources to assess the potential risks and opportunities associated with investing in a Precision Door Service franchise.