Is Precision Door Service obligated to offer a Key Accounts program to franchisees?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Key Accounts Program
We may, but have no obligation to, offer a Key Accounts or similar program. From time to time we evaluate opportunities for Key Accounts which might be best administered through our parent, an affiliate or a third party, as we determine. If we establish a Key Accounts program, you may participate in it subject to compliance with the standards and procedures of that program. We, Neighborly Service Solutions and/or a third party we select, may solicit Key Accounts for the franchisees of certain franchise systems affiliated with Neighborly, including us. A "Key Account" is a customer account which may be national or regional and cover multiple customer locations (within and/or outside your territory) with whom we have entered into arrangements (i) for servicing of multiple locations of such customers and/or (ii) that we determine are designed to benefit the System as a whole by gaining otherwise unavailable business or addressing the concerns of such customers that may require specific terms or provisions of our arrangement
with them, including without limitation special insurance, experience, equipment, pricing, payment terms, turnaround requirements, or approvals. A Key Account is generally, but not always, a large organization with multiple locations that need products and services provided by franchisees in our franchise system and/or the franchise systems of our affiliates around the country or in a region or other area. The agreement to provide services may be formal or informal and the account may be administered by us, an affiliate or a designee of ours. In some cases our Key Accounts program provides a central number customers may call for those services. If you elect to participate in our Key Accounts program, you must comply with the terms we specify, which may include provisions that require the payment of management fees or other fees, including sales commissions or similar payments, offering of special products or services at certain times or for certain prices (to the extent allowed by law) and special insurance, indemnity, quality control and other provisions. You may also be required to enter into additional agreements required by a Key Account or our policies and procedures. The Key Accounts administrator may collect payments from Key Account customers and distribute payments to franchisees for work provided but has no obligation, and we have no obligation, to make any payments to you for work to the extent payment in good funds by the Key Accounts customer has not been made to us or the administrator. We and/or the administrator of the Key Accounts program have the right to charge additional amounts, including commissions or other fees or charges, to third parties and/or to Key Account customers on account of work performed on Key Accounts by you or other third-party service providers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 41–46)
What This Means (2025 FDD)
According to the 2025 FDD, Precision Door Service is not obligated to offer a Key Accounts program to franchisees. Precision Door Service may evaluate opportunities for Key Accounts, which might be best administered through its parent, an affiliate, or a third party. If Precision Door Service establishes a Key Accounts program, franchisees may participate in it if they comply with the program's standards and procedures. Neighborly Service Solutions or a third party selected by Precision Door Service may solicit Key Accounts for franchisees of certain affiliated franchise systems, including Precision Door Service.
A Key Account is defined as a customer account, either national or regional, covering multiple customer locations within or outside a franchisee's territory. These accounts involve arrangements for servicing multiple locations or are designed to benefit the Precision Door Service system by gaining otherwise unavailable business or addressing customer concerns that may require specific terms or provisions.
If a Precision Door Service franchisee elects to participate in the Key Accounts program, they must comply with the terms specified by Precision Door Service. These terms may include the payment of management fees, sales commissions, or similar payments. Franchisees might also be required to offer special products or services at certain times or prices, subject to legal limitations, and to maintain special insurance, indemnity, quality control, and other provisions. Franchisees may also need to enter into additional agreements required by a Key Account or Precision Door Service's policies and procedures. The Key Accounts administrator may collect payments from Key Account customers and distribute payments to franchisees for work provided, but neither the administrator nor Precision Door Service is obligated to make payments if the Key Account customer has not paid. Precision Door Service or the administrator of the Key Accounts program can charge additional amounts, including commissions or other fees, to third parties or Key Account customers for work performed by franchisees or other third-party service providers.