What is the 'PE Addendum' for Precision Door Service franchises, and where can I find it?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Uniformity of franchise agreements among our franchisees may not always be possible or practical. We and our predecessors have offered in the past and we may offer in the future, franchise agreements to other franchisees on terms materially different from those included in this disclosure document. We also may materially vary the franchise agreement terms, conditions, and obligations (including those relating to fees, territories, training and other items) offered to other franchisees and except as may be required by applicable law we have no obligation to disclose these variations to you or to grant the same or similar variation to you. If you are a private equity firm and you meet our qualifications to become an owner of multiple Precision Garage Door Service® franchises (a "PE Owner"), we may allow you to enter into an addendum to Franchise Agreement, substantially in the form of Exhibit N-1 to this disclosure document (the "PE Addendum"), which modifies certain terms of our Franchise Agreement as further described in this disclosure document.
We also offer to qualified PE Owners the right to develop a minimum of two Precision Garage Door Service® Businesses and a maximum of 5 Businesses within a Development Area determined by us, under a development agreement ("Development Agreement"). The Development Agreement requires the PE Owner to open an agreed-upon number of Businesses in accordance with a development schedule. The PE Owner (or its affiliate approved by us) must sign one Franchise Agreement at the time it signs the Development Agreement, and that Business must be opened within 6 months of signing. For each additional Business, the PE Owner (or approved affiliate) must sign our then-current form of Franchise Agreement for each Business that it opens.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–20)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Precision Door Service may offer a 'PE Addendum' to its standard Franchise Agreement for qualified private equity firms ('PE Owners') looking to own multiple franchises. This addendum modifies certain terms of the standard agreement. The FDD states that the PE Addendum is substantially in the form of Exhibit N-1 to the disclosure document.
Precision Door Service may also offer qualified PE Owners the right to develop a minimum of two and a maximum of five businesses within a Development Area, as determined by them, under a development agreement. The PE Owner must sign one Franchise Agreement when signing the Development Agreement, and that business must open within six months. For each additional business, the PE Owner must sign the then-current form of Franchise Agreement.
For a prospective franchisee who is part of a private equity firm, this means there's a potentially different set of terms available compared to a standard franchisee. The PE Addendum and the possibility of a development agreement could allow for faster expansion and different operational conditions. It is important to carefully review Exhibit N-1 to understand the specific modifications to the standard Franchise Agreement and to discuss the requirements for qualifying as a PE Owner with Precision Door Service.