How often are the License Fees paid to Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
From and after the Effective Date, you must pay to us, in the manner specified in Section 8.D, a monthly fee (the "License Fee") in the amount set forth on the Data Sheet.
All payments of the License Fees and MAP Fees are due to us by the 5th of each month for the month just ended.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, franchisees are required to pay License Fees on a monthly basis. Specifically, the License Fees, along with any MAP Fees, are due by the 5th of each month, covering the previous month's activity. This means that Precision Door Service franchisees must ensure that payments are made promptly to avoid any potential issues or penalties.
This monthly payment schedule is a common practice in franchising, allowing franchisors to maintain a steady stream of revenue and provide ongoing support to franchisees. For a prospective Precision Door Service franchisee, this means incorporating the License Fee into their monthly financial planning and ensuring sufficient cash flow to meet this obligation. The specific amount of the License Fee is detailed in the Data Sheet, which is part of the Franchise Agreement.
Missing the payment deadline could lead to penalties or even constitute a breach of the franchise agreement. Therefore, franchisees should set up systems to ensure timely payments, such as electronic transfers or reminders. Understanding the due dates and methods of payment is crucial for maintaining a good relationship with Precision Door Service and operating a successful franchise.