If a Precision Door Service franchisee proposes to transfer their franchise, what must they do first?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Conditions of Transfer. We condition our consent to any proposed Transfer, whether to an individual, a corporation, a partnership or any other entity, upon the following:
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- Assignee Requirements. The Assignee must meet all of our then-current requirements for our PRECISION GARAGE DOORSERVICE®franchise program we are offering at the time of the proposed Transfer, sign our then-current form of franchise agreement, and its owners must become guarantors of the Business as required under Section 6.A.
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- Payment of Amounts Owed. All amounts owed by you to us, or any of our affiliates or your suppliers, or upon which we or our affiliates have any contingent liability, must be paid in full.
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- Reports. You must have provided all required reports to us.
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- Guarantee. In the case of an installment sale for which we have consented to you or any owner retaining an interest or other financial interest in this Agreement or the Business, you or such owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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- Assumption of Obligations. The Assignee must assume and agree to be bound by all of your Customer obligations, including all warranty work and service plans obligations.
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- General Release. You and each guarantor must sign a general release of all claims arising out of or relating to this Agreement, your Business or the parties' business relationship, in the form we designate, releasing us and our affiliates.
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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 looking to transfer their franchise must first meet several conditions to obtain the franchisor's consent. These conditions include ensuring the proposed assignee meets all of Precision Door Service's then-current requirements for new franchisees. This encompasses the assignee signing the then-current form of the franchise agreement and its owners becoming guarantors of the business.
Additionally, the franchisee must ensure that all outstanding amounts owed to Precision Door Service, its affiliates, or suppliers are paid in full. The franchisee must also have provided all required reports to the franchisor. In cases where there's an installment sale and the franchisee or any owner retains a financial interest, they and the guarantors must guarantee performance under the agreement until the sale is finalized or the interest terminates.
Furthermore, the assignee must assume all of the franchisee's customer obligations, including warranty work and service plan obligations. Finally, the franchisee and each guarantor must sign a general release of all claims related to the franchise agreement, the business, or the business relationship, in a form designated by Precision Door Service, releasing the franchisor and its affiliates from any liability.