Does Precision Door Service have an option to purchase a franchisee's business?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| the term of the Franchise Agreement; you have | ||
|---|---|---|
| not failed to meet the Minimum Performance | ||
| Standards for any | 2 calendar years | (or 2 |
| Provision | Section in Franchise Agreement (unless otherwise specified) | |
| v. Choice of venue | 14(H) | |
| w. Choice of law | 14(G)(1) Section in Development Agreement (“DA”) (unless otherwise | |
| Provision | specified | Summary |
| a. Term of the franchise | Section 4 | DA expires on a date upon which PE Owner has opened and has in operation all of the Businesses set forth in the Development Schedule. |
| b. Renewal or extension of the term | None | None |
| c. Requirements for you to renew or | None | None |
| extend | ||
| d. Termination by you | None | Not Applicable |
| e. Termination by us without cause | None | Not Applicable |
| f. Termination by us with cause | Section 6 Section in Development Agreement (“DA”) (unless otherwise | We may terminate if you default under the DA or any Franchise Agreement. |
| Provision | specified | Summary |
| g. “Cause” defined - defaults which can be cured | Section 6 | 120 days to cure a development schedule default; 30 days to satisfy a final judgment, to dismiss a suit to foreclose any lien or mortgage against the premises or any equipment of the Business or to remedy other defaults that are curable. |
| h. “Cause” defined - defaults which cannot be cured | Section 6 | Bankruptcy or insolvency, execution against PE Owner’s business or property; real or personal property is sold after levy. |
| i. Your obligations on | Section 5 and | Compliance with post-termination |
| termination/non-renewal | 7.2 | covenant not to compete. |
| j. Assignment of contract by us | Section 6 | No restriction on our right to assign. |
| k. “Transfer” by you – definition | Section 6 | Transfer of rights or obligations under the DA. |
| l. Our approval of transfer by you | Section 6 | You may not transfer your rights or obligations under the DA without our approval. |
| m. Conditions for our approval of transfer | Section 6 | You may not transfer your development rights under the DA separate and independent from Franchise Agreements for Businesses in the Development Area, although you are not required to transfer all of your Franchise Agreements as part of the transfer of development rights. You must pay a transfer fee and we must agree on which Businesses will be included in the transfer. |
| n. Our right of first refusal to acquire | None | Not Applicable. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 72–80)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Precision Door Service does not have the option to purchase a franchisee's business. Item 17 outlines the terms for renewal, termination, transfer, and dispute resolution within the franchise agreement.
The table within Item 17 specifically addresses whether Precision Door Service has a right of first refusal or an option to purchase a franchisee's business. The listed summary for 'Our right of first refusal to acquire your business' is 'Not Applicable.' Similarly, for 'Our option to purchase your business,' the summary is also 'Not Applicable.'
This means that Precision Door Service franchisees do not have to worry about the franchisor potentially buying their business. This can provide franchisees with more autonomy in deciding the future of their business and its eventual sale, as they are not obligated to offer it to the franchisor first. However, franchisees should still be aware of other transfer conditions and restrictions outlined in the franchise agreement.