What are the primary sources of revenue for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's primary sources of revenue are as follows:
- Franchise service fees from existing franchise owners based on a percentage of each franchise owner's gross sales. These fees generally range from 2% to 15% of the franchise owner's weekly sales, depending upon the particular franchise concept and upon various other factors;
- Franchise sales fees generated from the sale of new franchise territories and the sale of additional franchise territories to existing franchise owners;
- Sales of products and services to unrelated third parties;
- Advertising and promotional fund revenue represents marketing, advertising and promotional ("MAP") fund fees collected from existing franchise owners. These fees are typically a percentage of each franchise owner's gross sales and vary depending upon the particular franchise concept and various other factors;
- Other revenue consists of incentives earned from services performed for unrelated third parties and interest generated from notes receivable.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the company's primary sources of revenue are derived from several key areas. These include franchise service fees collected from existing franchise owners, which are calculated as a percentage of the owner's gross sales, typically ranging from 2% to 15% weekly depending on the franchise concept and other factors. Additionally, Precision Door Service generates revenue from franchise sales fees through the sale of new territories and additional territories to current franchisees.
Another significant revenue stream for Precision Door Service comes from the sales of products and services to unrelated third parties. The company also collects advertising and promotional (MAP) fund fees from its franchisees, which are also a percentage of gross sales and can vary. These MAP funds are earmarked for marketing, advertising, and promotional activities.
Finally, Precision Door Service earns revenue from other sources, including incentives for services performed for unrelated third parties and interest generated from notes receivable. Understanding these diverse revenue streams is crucial for potential franchisees as it provides insight into how Precision Door Service sustains its operations and supports its franchisees.