What is the insufficient funds fee charged by Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
s provision overrides other provisions in this and all other instruments related hereto.
If any installment of this note is not paid within thirty (30) days of its due date, a late charge in the amount of TEN AND NO/100 DOLLARS ($10.00) per payment per day will be paid by DEBTOR upon demand as compensation for any expense or inconv
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, if a franchisee's check or draft is returned for insufficient funds, Precision Door Service will charge the franchisee $25.00 per returned draft or check. This fee is intended to reimburse Precision Door Service for the costs and inconvenience incurred due to the returned payment.
This type of fee is relatively standard in franchising and business operations. It is designed to cover the administrative and financial burden placed on the franchisor when a payment is not honored by the franchisee's bank. Franchisees should ensure they maintain sufficient funds to cover all payments to avoid incurring this fee.
It's important to note that this reimbursement demand does not affect any other remedies Precision Door Service may have available. This means that in addition to charging the $25.00 fee, Precision Door Service can pursue other legal or contractual options to recover the unpaid amount or address any breach of the franchise agreement caused by the insufficient funds.