When does Precision Door Service recognize revenue from product sales?

According to Precision Door Service's 2025 Franchise Disclosure Document, revenue from product sales is recognized at different times depending on the specific circumstances. Revenue is recognized either upon the transfer of the title of the product, when the product is physically delivered to the customer, when the work related to the product is performed, or when the orders for the product are shipped.

This means that Precision Door Service has flexibility in determining when to recognize revenue from product sales, which can depend on the nature of the sale and the agreement with the customer. For example, if a customer purchases a garage door and has it installed by Precision Door Service, revenue might be recognized when the installation is complete. Alternatively, if the product is shipped directly to the customer, revenue could be recognized upon shipment.

For a prospective franchisee, this revenue recognition policy is important because it affects how sales and royalties are calculated. Understanding when Precision Door Service recognizes revenue helps the franchisee align their own accounting practices and reporting with the franchisor's policies. It also ensures that royalty payments are accurately calculated based on recognized revenue.