If a Precision Door Service franchisee violates the non-competition covenant, what are the consequences?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that the length of time in paragraph 3 above will be tolled for any period during which you are in breach of the non-compete covenants or any other period during which we seek to enforce this Agreement.
You further agree that upon Franchisor's request you shall make his/her personal and business records available for inspection by Franchisor to determine your compliance with this provision.
If you breach this Agreement, you shall pay reasonable attorney's fees and other costs incurred by Franchisor and/or Franchisee in enforcing the provisions of this Agreement.
Any unauthorized disclosure following execution of this Agreement may be cause for suit for injunctive relief and damages.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, if a franchisee breaches the Franchise Agreement, they may be liable for legal fees and costs incurred by Precision Door Service in enforcing the agreement. Specifically, this includes breaches of the non-compete covenants.
Additionally, the agreement states that the length of the non-compete period will be extended for any duration during which the franchisee is in breach of the non-compete covenants. This means that any violation of the non-compete agreement will effectively prolong the time the franchisee is restricted from engaging in competitive activities.
Furthermore, Precision Door Service retains the right to inspect the franchisee's personal and business records to ensure compliance with the non-compete provisions. This allows Precision Door Service to actively monitor and verify that franchisees are adhering to the terms of the agreement. The FDD also states that unauthorized disclosure following the execution of the agreement may be cause for suit for injunctive relief and damages.