What is the required action before advertising the sale of a Precision Door Service business?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not meet the Gross Sales MPS (i.e., the Business' annual Gross Sales are in the bottom 10% of the PRECISION GARAGE DOOR SERVICE® franchised businesses for that calendar year) for any applicable calendar year or the Customer Satisfaction MPS for any
applicable measurement period, we will meet with you to identify the reasons for the substandard performance and establish a performance improvement plan ("PIP") for the Business to take specific actions with the goal to improve the overall performance of the Business, including its annual Gross Sales and/or NPS. Your failure to implement or comply with the PIP over the three to six month period we designate will be a default under this Agreement, subject to a 30-day cure period. During the cure period, you will have the opportunity to advise us of your intent to sell the Business to a third party, in which case we will give you an additional 90 days (from the date of your notice of intent to sell) to transfer the Business in accordance with the transfer requirements of Section 10 of this Agreement. Failure to timely cure the default or transfer the Business as provided herein will give us the right to either reduce the size of your Territory or terminate this Agreement.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, if a franchisee fails to meet the Minimum Performance Standards (MPS), specifically if their annual Gross Sales fall within the bottom 10% of Precision Door Service franchises or if their Customer Satisfaction MPS is not met, Precision Door Service will meet with the franchisee to create a performance improvement plan (PIP).
During the cure period for not meeting the MPS, the franchisee has the option to inform Precision Door Service of their intent to sell the business to a third party. If the franchisee does so, Precision Door Service will grant an additional 90 days from the date of notification to facilitate the transfer of the business. This transfer must be conducted in accordance with the requirements outlined in Section 10 of the Franchise Agreement.
Therefore, before advertising the sale of a Precision Door Service business under these circumstances, the franchisee must first notify Precision Door Service of their intent to sell. This notification triggers a 90-day period to complete the sale, adhering to the transfer guidelines specified in the franchise agreement.