Does Precision Door Service retain all rights not expressly granted in the franchise agreement?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) the right to provide, offer and sell and to grant others the right to provide, offer and sell goods and services that are identical or similar to and/or competitive with those provided at the Franchise Location hereunder, whether identified by the Marks or other trademarks or service marks, through dissimilar channels of distribution (including internet or similar electronic media) both inside and outside the Territory and on any terms and conditions we deem appropriate;
(iii) the right to establish and operate, and to grant to others the right to establish and operate businesses offering dissimilar products and services, both inside and outside the Territory under the Marks and on any terms and conditions we deem appropriate;
(iv) the right to establish and operate, and to grant others the right to establish and operate a PRECISION GARAGE DOOR SERVICE® Business located anywhere outside the Territory under any terms and conditions we deem appropriate and regardless of their proximity to the Franchise Location or their actual or threatened impact on sales at the Franchise Location;
(v) (a) the right, directly or through an authorized third party (including, another franchisee), to advertise, solicit, enter into contracts with and service Key Accounts in any area, including in the Territory, upon such terms as we negotiate from time to time; or (b) further, if (i) you refuse or, in our sole judgment, are not qualified, interested or available to perform services or otherwise cannot or do not perform services for any customer located within the Territory, including a Key Account, (ii) you request assistance in the performance of services to a customer, or (iii) a customer, orally or in writing, specifically requests services within the Territory from a different franchisee or another third party, we have the right to authorize another franchisee (or designate or authorize a corporate employee or any other third party) to perform services for or sell products to the applicable customers inside the Territory.
You agree that you will not be entitled to any compensation for sales or services performed inside the Territory by someone other than you as contemplated under this paragraph;
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, Precision Door Service retains specific rights, even within a franchisee's territory. These retained rights allow Precision Door Service to operate and grant others the right to operate businesses offering different products/services under the Precision Door Service marks, both inside and outside the franchisee's designated territory. This means that while a franchisee is granted a specific territory, Precision Door Service can still engage in business activities that might seem competitive but involve different offerings.
Precision Door Service also retains the right to offer and sell goods and services identical or similar to those provided at the franchise location through different distribution channels, including the internet, both inside and outside the territory. This is a significant point for prospective franchisees as it means Precision Door Service can directly compete with its franchisees online or through other channels. Furthermore, Precision Door Service has the right to service "Key Accounts" within any area, including the franchisee's territory, and can authorize another franchisee or third party to perform services within the territory if the franchisee is unable or unwilling to do so.
These stipulations mean that a Precision Door Service franchisee's territory is not exclusive in all practical senses. Precision Door Service maintains considerable control over how and where its services are offered, even within a franchisee's primary area. The franchisee will not be entitled to any compensation for sales or services performed inside the Territory by someone other than them as contemplated under this paragraph. This could impact a franchisee's potential revenue and market share, as Precision Door Service can authorize others to tap into the same customer base.
Therefore, prospective franchisees should carefully consider these retained rights and understand how they might affect their business operations and revenue potential. It would be prudent to discuss with Precision Door Service how these rights are typically exercised and what measures are in place to ensure fair competition and support for franchisees.