What is the geographic scope of the license granted to a Precision Door Service franchisee?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
d methods, processes, policies and procedures for the offer, sale, performance, service, installation and repair of garage doors and operators, along with items of trade dress, sales, leadership and management training for the development and operation of PRECISION GARAGE DOOR SERVICE® Businesses, including all training materials; all as the same may exist today or as the same may change from time to time, as specified in the Operations Manual or as otherwise reasonably directed by us from time to time.
- P. "Territory" means the area designated on the Data Sheet. If the Territory is not designated at the time you and we sign this Agreement, we will notify you of the Territory within 30 days of the Effective Date. To the extent any portion of the Territory includes an area designated as an Indian Reserve, a governmental territory or other territory that may have separate or additional laws, regulations or other requirements for performing work in such territory, Franchisee is granted such territory only to the extent and for so long as Franchisee is qualified under such separate or additional requirements to perform work in such territory; knowledge of and compliance with such requirements being the sole responsibility of Franchisee.
GRANT OF LICENSE
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- The following provisions control with respect to the license granted hereunder:
- A. Rights Granted. Subject to the terms and conditions of this Agreement, we hereby grant you the right and license to engage in and conduct, in the Territory, during the term of this Agreement, a PRECISION GARAGE DOOR SERVICE® Business identified by the Marks.
You hereby accept said license and undertake the obligation to operate your Business faithfully, honestly and diligently, using the System and in compliance with this Agreement and our standards and requirements. You may not subfranchise, sublicense, assign or transfer your rights under this Agreement, except as specifically provided in this Agreement.
B. Rights to Territory. During the term of this Agreement and provided that you are in compliance with the terms and conditions of this Agreement, we will not (i) modify the Territory without your written permission, subject to your compliance with the Minimum Performance Standards set forth in Section 5.R, or (ii) subject to our reservation of rights set forth in Section 2.C, establish either a company- or affiliate-owned or franchised PRECISION GARAGE DOOR SERVICE® Business geographically located within the Territory.
You may not advertise or solicit customers, perform services or sell products related to the Business outside the Territory without our prior written consent, which consent we may give, condition or withdraw as we deem appropriate. If you receive a request for services or products from outside the Territory, you must refer that request to the franchisee, if any, that owns the applicable territory, or seek our written permission to process such a request. Notwithstanding the foregoing, under certain limited circumstances, you may process such a request from outside the Territory if such activity is permitted under our Preferred Lead Program as more particularly set forth in the Operations Manual.
If we permit you to advertise, solicit, service or sell in areas outside the Territory that are not serviced by another franchisee (each, a "Territory Available for Sale" or "TAFS"), you must comply with all of the conditions and other requirements that we may from time to time specify (in the Operations Manual or otherwise in writing) with respect to such activities. At any time upon our demand or upon your actual notice that a TAFS has been purchased by another franchisee, you agree to immediately cease all activities in such TAFS and to comply with our procedures for the transition of Customer accounts for such TAFS.
- C. Our Reservation of Rights. Except as expressly limited by Section 2.B, we and our affiliates may engage in any activity whatsoever on any terms and conditions we deem advisable whenever and wherever we or they desire.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, a franchisee is granted the right to operate a Precision Garage Door Service business within a specific territory, as defined in the Data Sheet attached to the Franchise Agreement. The territory will be designated either at the time of signing the agreement or within 30 days of the effective date. The franchisee must comply with all applicable laws and regulations within their territory, including any specific requirements for Indian Reserves or governmental territories.
Precision Door Service will not modify the territory or establish another company-owned or franchised Precision Garage Door Service business within the franchisee's territory, as long as the franchisee complies with the terms of the agreement and meets the Minimum Performance Standards. However, Precision Door Service retains certain rights, including the right to offer and sell goods and services through dissimilar channels of distribution (like the internet) both inside and outside the territory. They also have the right to establish businesses offering dissimilar products and services, and to operate a Precision Garage Door Service business outside the franchisee's territory, regardless of proximity or impact on the franchisee's sales.
Precision Door Service also reserves the right to service Key Accounts (national or regional customers) within the franchisee's territory, either directly or through another franchisee. If the franchisee is unable or unwilling to service a customer within their territory, or if a customer specifically requests service from another franchisee, Precision Door Service can authorize another franchisee or third party to perform the services. The franchisee will not be entitled to any compensation for sales or services performed by others within their territory under these circumstances.
This territorial agreement is typical in franchising, but the prospective franchisee should be aware of the exceptions that Precision Door Service has carved out for itself. These exceptions could impact the franchisee's business within their territory, particularly concerning online sales and key accounts. It is important for a prospective franchisee to fully understand these exceptions and how they might affect their potential revenue and customer base.