What is the scope of the covenant not to compete for a Precision Door Service franchisee?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
Covenant Not to Compete.
Except as otherwise approved in writing by Franchisor, you may not, directly or indirectly, through, on behalf of, or in conjunction with, any other person, partnership, or legal entity, own, maintain, operate, or engage or participate in, inure benefit to, or have any financial interest, either as an officer, agent, employee, principal, partner, director, shareholder or any other individual or representative capacity, in any corporation, partnership or other legal entity that engages in any business that is the same as or similar to the Business, or is otherwise in competition with the business of Franchisor or Franchisor's franchisees, that engages in the distribution of similar products, services and/or equipment and that is located:
PRECISION DOOR SERVICE - 2025 FDD
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 Precision Door Service FDD, a franchisee is restricted from engaging in any business that is the same as or similar to the Precision Door Service business. This includes activities such as owning, maintaining, operating, or participating in any entity that competes with Precision Door Service or its franchisees. The restriction applies to businesses involved in the distribution of similar products, services, or equipment.
The non-compete clause is in effect while the Franchise Agreement is active. The restrictions apply to any location unless otherwise approved in writing by Precision Door Service.
This non-compete agreement aims to protect Precision Door Service's market position and prevent franchisees from using the franchisor's resources and knowledge to compete against the system, which is a standard practice in franchising. Franchisees should carefully consider these restrictions and how they might impact their future business endeavors before entering into a franchise agreement with Precision Door Service.