What is ProTradeNet's relationship to Precision Door Service franchisees?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
or services, or your use of designated or approved sources. Our affiliate, ProTradeNet, negotiates and enters into purchase arrangements, which may include discounted pricing, special terms, rebates or other incentives with suppliers for the benefit of our franchisees. We may also negotiate or enter into these types of arrangements directly. ProTradeNet has and may enter into relationships with other buying groups, which may include competitors, for the purpose of improving negotiating strength and purchase volume for the entire group.
We or an affiliate (including ProTradeNet) may make available to you the opportunity to participate from time to time in certain discounts, rebates, or other benefits in connection with approved suppliers (collectively, "Rebates"), if you meet certain conditions, such as supplier terms and conditions and attendance at annual meetings. All Rebates not returned to franchisees may be retained by us or our affiliate (including ProTradeNet) and used to cover administrative costs or to promote our system and brands. Although neither we nor ProTradeNet have any contractual obligation to pay you Rebates, in most instances, but subject to change and vendor relationships, ProTradeNet will retain 25% of all Rebates, pay 25% of all Rebates to us and pay 50% of all Rebates to you, the franchisee, based on qualifying purchases. The Rebates received by ProTradeNet from suppliers are generally a percentage of each supplier's annual billings to franchisees with respect to certain products or services provided by the supplier to the franchisees. In 2024, these Rebates ranged from 1% to 25% of the suppliers' annual billings to franchisees. Some suppliers may also pay additional fees for advertising, which fees range from $500 to $35,000; for marketing, which fees range from .5% to 1% of total qualified purchases by franchisees from the supplier; and for sponsorships, and tradeshow space, which fees range from $500 to $175,000, for the purpose of promoting their product or service to franchisees. All of these amounts and percentages, including the percentages of Rebates retained by ProTradeNet and paid to us and to you and all additional fees, may change in the future at our sole discretion. Rebates are typically paid on net sales for qualified purchases and ProTradeNet may or may not from time to time include purchases made by the MAP Fund (if and when established) in our rebate program. If MAP Fund is established and MAP Fund purchases are included as
qualified purchases, ProTradeNet will allocate 100% of the rebates from those purchases to the MAP Fund. The agreement you are required to sign with ProTradeNet to participate is included as Exhibit J hereto, and additional terms and conditions, which may change from time to time, are included on the ProTradeNet website, www.protradenet.com. While you are required to enter into the ProTradeNet Agreement, you are not required to purchase any items under the ProTradeNet Program except as otherwise stated in this disclosure document or required by your Franchise Agreement, our Manuals or our policies and procedures. However, certain benefits, Rebates and special pricing will be available to you only if you participate on the terms required by ProTradeNet or each individual supplier.
We may derive revenue as a result of your required purchases. Amounts listed below are based on cash received and cash disbursed. Some Rebates may be received and the portion of any that are disbursed may be held until the next national meeting before being disbursed. Not all suppliers provide Rebates. A complete listing of suppliers providing Rebates and their rates is available from ProTradeNet.
- In the year ended December 31, 2024, we had revenue of $1,880,189, or about 6.55% of our total revenues of $28,720,322, as a result of purchases by Precision Garage Door Service® franchisees from approved suppliers or under our specifications or as a result of purchases, if any, directly from us. These figures were computed from our internal accounting records for the year ended December 31, 2023.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 41–46)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, ProTradeNet is an affiliate that negotiates purchase arrangements with suppliers for the benefit of franchisees. These arrangements may include discounted pricing, special terms, rebates, or other incentives. ProTradeNet may also partner with other buying groups, potentially including competitors, to enhance negotiating power and purchase volume.
Precision Door Service franchisees may have the opportunity to participate in discounts, rebates, or other benefits through ProTradeNet with approved suppliers, provided they meet certain conditions like adhering to supplier terms and conditions and attending annual meetings. While franchisees are required to sign an agreement with ProTradeNet, they are not obligated to purchase items through the program unless otherwise stated in the FDD, the Franchise Agreement, or the company's manuals and policies. However, certain benefits, rebates, and special pricing are contingent upon participation in the ProTradeNet program.
ProTradeNet retains 25% of all rebates, pays 25% to Precision Door Service, and distributes 50% to the franchisee based on qualifying purchases. Rebates received by ProTradeNet from suppliers typically range from 1% to 25% of the suppliers' annual billings to franchisees. Suppliers may also pay additional fees for advertising (ranging from $500 to $35,000), marketing (ranging from 0.5% to 1% of total qualified purchases), and sponsorships and tradeshow space (ranging from $500 to $175,000) to promote their products or services to franchisees. These percentages and fees are subject to change at Precision Door Service's discretion. In 2024, ProTradeNet had revenue of $482,890 from purchases by Precision Garage Door Service franchisees.
Vehicle rebates are applied at the time of purchase by the vehicle dealer, typically as a discount off the vehicle purchase price. Program details and documentation are available from ProTradeNet and must be used when ordering the vehicle to receive the full benefit.