What are the requirements for the Excluded Services Addendum for a Precision Door Service franchise?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
o the Franchise Agreement). The Excluded Services Addendum requirements include that (i) the operation of the Existing Business does not interfere with your operation of the Business; (ii) you do not utilize our Marks, System and Confidential Information in the operation of the Existing Business; (iii) the Existing Business offers only the Excluded Services (the gross sales of which are excluded from the Gross Sales of the Business) specifically identified in the Excluded Services Addendum, which are services specified by us that are related to but distinguishable from the services of your Business, and does not compete with the Business by offering the same services and/or products as the Business; and (iv) you maintain separate books and records for each of the Business and the Existing Business. You must agree to make the books and records for your Existing Business available to us on reasonable prior written notice so that we may verify your compliance with the requirement concerning separate books and records.
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- Minimum Local Marketing Spending; Local Marketing Group/Advertising Cooperatives. You must spend an amount annually on approved local marketing and advertising of your Business (the "Minimum Local Marketing Spending") equal to the greater of: (a) $20,000; or (b) 8% of your Gross Sales for the previous year. The amount you spend on Minimum Local Marketing Spending will be in addition to any MAP fees you must pay to us. Amounts paid to an LMG, the Start-Up Phase Marketing Spending (as defined below) and certain other amounts of local advertising spending will count towards the Minimum Local Marketing Spending, as more particularly described in the Manuals.
Source: Item 6 — OTHER FEES (FDD pages 28–36)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the Excluded Services Addendum outlines specific requirements for franchisees who wish to exclude certain services from their franchise agreement. This addendum is relevant if a franchisee already operates an existing business that offers services related to, but distinguishable from, those of a Precision Door Service franchise.
The requirements for the Excluded Services Addendum include several key stipulations. First, the operation of the franchisee's existing business must not interfere with the operation of the Precision Door Service franchise. Second, the franchisee must not use Precision Door Service's trademarks, system, or confidential information in the operation of the existing business. Third, the existing business can only offer the specific services listed in the Excluded Services Addendum, and these services must be distinguishable from those offered by the Precision Door Service franchise; the existing business cannot compete with the franchise by offering the same services or products. Finally, the franchisee must maintain separate books and records for both the Precision Door Service franchise and the existing business.
Precision Door Service also requires franchisees to make the books and records of their existing business available for inspection upon reasonable prior written notice. This allows Precision Door Service to verify compliance with the requirement to maintain separate books and records. These requirements ensure that the existing business remains distinct from the Precision Door Service franchise and does not infringe upon the franchise's operations or brand identity. If a franchisee does not currently perform these services or sales in an existing business but elects to start offering those services in the future, they will not have the option of excluding those services from the franchise.