What is a 'PE Owner' in the context of Precision Door Service franchises?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Precision Door Service Franchise Disclosure Document, a 'PE Owner' refers to a private equity firm that meets specific qualifications established by Precision Door Service to own multiple franchise locations. These qualified firms may be allowed to enter into an addendum to the standard Franchise Agreement, known as the 'PE Addendum,' which modifies certain terms of the agreement. This addendum is substantially in the form of Exhibit N-1 to the disclosure document.
Precision Door Service also offers qualified PE Owners the opportunity to develop multiple Precision Garage Door Service businesses within a designated Development Area, subject to a development agreement. This agreement requires the PE Owner to open a minimum of two and a maximum of five businesses according to an agreed-upon development schedule.
As part of the Development Agreement, the PE Owner (or an approved affiliate) must sign one Franchise Agreement at the time of signing the Development Agreement, and that business must be opened within six months. For each additional business, the PE Owner (or approved affiliate) must sign Precision Door Service's then-current form of Franchise Agreement. This structure allows private equity firms to expand the Precision Door Service brand more rapidly within specific areas, while also providing flexibility in the terms and conditions of the franchise agreements.