When is the initial franchise fee for Precision Door Service earned, and is it refundable?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon signing of this Agreement, you must pay to us an initial franchise fee as set forth in the Data Sheet (the "Initial Franchise Fee"), which is earned upon receipt and is non-refundable.
Any financing of the Initial Franchise Fee is only available if we offer you financing under the terms of the Promissory Note and Security Agreement included as Schedule G.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the initial franchise fee is paid upon signing the Franchise Agreement. This fee is considered earned upon receipt by Precision Door Service and is explicitly non-refundable. This means that once the agreement is signed and the fee is paid, the franchisee cannot get the money back, regardless of whether they proceed with opening the franchise.
This non-refundable policy is a standard practice in the franchise industry, as the franchisor incurs costs from the moment the agreement is signed, such as providing training, site selection assistance, and other support services. The franchisee should carefully consider all aspects of the franchise opportunity and conduct thorough due diligence before signing the agreement and paying the initial franchise fee.
Precision Door Service does offer financing for the initial franchise fee under specific terms outlined in the Promissory Note and Security Agreement, which is included as Schedule G in the Franchise Agreement. This may be an option for franchisees who need assistance covering the upfront cost, but it's important to understand the terms and obligations of the financing agreement.