What rights does Precision Door Service reserve when they begin to collect MAP Fees?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
If and when we begin to collect MAP Fees as provided in Section 8.D, we reserve the right to establish and manage a Marketing, Advertising and Promotion Fund for PRECISION GARAGE DOOR SERVICE® Businesses (the "MAP Fund") and deposit all MAP Fees you pay to us hereunder in the MAP Fund. On behalf of our company and affiliateowned PRECISION GARAGE DOOR SERVICE® Businesses, we will pay the same MAP Fee as similarly situated franchised PRECISION GARAGE DOOR SERVICE® Businesses. The MAP Fund will not be a trust or escrow account, and we will have no fiduciary obligation to franchisees with respect to it. We will have the right to make disbursements from the MAP Fund for expenses incurred in connection with the cost of formulating, developing, implementing and administering marketing, advertising, public relations, and promotional campaigns. The disbursements may include payments to us for the expense of administering the MAP Fund, including accounting expenses and salaries and benefits paid to our employees engaged in the administration and operation of the MAP Fund or otherwise providing services with respect to the MAP Fund. We will have the right to determine the methods of marketing, advertising, media employed and contents, terms and conditions of marketing campaigns and promotional programs. Because of the methods used, we will not be required to spend a prorated amount on each PRECISION GARAGE DOOR SERVICE® Business or in each advertising market. We, as the administrator of the MAP Fund, will have the right to collaborate with the administrators of advertising funds of certain other franchise systems affiliated with us. You acknowledge that there can be no assurance that the MAP Fund's participation in these collaborations and joint efforts will benefit PRECISION GARAGE DOOR SERVICE® Businesses proportionately or equivalently to the benefits received by any other franchised businesses of the other participating affiliated franchise systems.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, if and when they begin to collect MAP Fees, they reserve the right to establish and manage a Marketing, Advertising and Promotion Fund (MAP Fund) for Precision Door Service businesses. Precision Door Service will deposit all MAP Fees into this fund. The company and its affiliate-owned Precision Door Service businesses will contribute to the MAP Fund at the same rate as franchised businesses.
The MAP Fund will not be a trust or escrow account, and Precision Door Service will not have a fiduciary obligation to franchisees regarding the fund. They have the right to use the MAP Fund for expenses related to formulating, developing, implementing, and administering marketing, advertising, public relations, and promotional campaigns. These expenses may include payments to Precision Door Service for administering the MAP Fund, covering accounting expenses, salaries, and benefits for employees involved in the fund's administration and operation.
Precision Door Service has the right to determine the marketing methods, advertising strategies, media channels, and the content, terms, and conditions of marketing campaigns and promotional programs. Due to the various marketing methods used, Precision Door Service is not required to spend a prorated amount on each Precision Door Service business or in each advertising market. Precision Door Service, as the administrator of the MAP Fund, can collaborate with advertising fund administrators from other affiliated franchise systems. There is no guarantee that the MAP Fund's participation in these collaborations and joint efforts will benefit Precision Door Service businesses proportionately or equally to the benefits received by other participating affiliated franchise systems' franchised businesses.