Is Precision Door Service a subsidiary of Neighborly Company and Subsidiaries?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| For the Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Operating activities | ||||
| Net loss | $ | (39,118) | $ | (439,076) |
| Adjustments to reconcile net loss to net cash provided by | ||||
| operating activities: | ||||
| Depreciation and amortization | 123,676 | 116,929 | ||
| Amortization of deferred financing costs | 4,409 | 4,164 | ||
| Loss on impairment of goodwill and tradenames | - | 428,286 | ||
| Bad debt expense | 3,810 | 2,812 | ||
| Trade notes issued | (14,978) | (15,243) | ||
| Collections of notes receivable | 17,660 | 16,605 | ||
| Deferred income taxes | (20,651) | (44,346) | ||
| Loss on disposal of assets | 3,589 | - | ||
| Equity-based compensation | 3,130 | 4,194 | ||
| Changes in assets and liabilities: | ||||
| Trade accounts receivable | (2,848) | (1,403) | ||
| Inventories | 249 | 626 | ||
| Prepaid selling expenses and other assets | (4,313) | 3,722 | ||
| Trade accounts payable | 1,907 | (6,249) | ||
| Accrued liabilities | (9,729) | (8,512) | ||
| Other non-current liabilities | (83) | (275) | ||
| Income tax payable | (7,352) | (1,519) | ||
| Change in operating lease assets and liabilities | (181) | 3,535 | ||
| Deferred revenue | 1,323 | 11,246 | ||
| Net cash provided by operating activities | 60,500 | 75,496 | ||
| Investing activities | ||||
| Purchase of property, equipment and other assets | (25,042) | (27,931) | ||
| Acquisitions of intangible assets | (677) | - | ||
| Net cash used in investing activities | (25,719) | (27,931) | ||
| Financing activities | 575 | - | ||
| Equity contribution | ||||
| Distributions paid | (170,204) | (324,718) | ||
| Deferred financing costs paid | (3,241) | (13,866) | ||
| Proceeds from revolving credit | 158,000 | 25,000 | ||
| Payment on revolving credit | (25,000) | - | ||
| Payments on principal portion of finance lease liabilities | (4,749) | (3,455) | ||
| Payments on long-term borrowings | (14,850) | (14,323) | ||
| Proceeds from long-term borrowings | - | 275,000 | ||
| Net cash used in financing activities | (59,469) | (56,362) | ||
| Effect of foreign currency translation on cash | (851) | (1,255) | ||
| Net decrease in cash and restricted cash | (25,539) | (10,052) | ||
| Cash and restricted cash - Beginning of period | $ | 72,052 | $ | 82,104 |
| Cash and restricted cash - End of period | $ | 46,513 | $ | 72,052 |
| Supplemental cash flow disclosures: | ||||
| Cash paid for income taxes, net of refunds | $ | 16,770 | $ $ | 15,829 |
| Cash paid for interest | 65,052 | 60,258 | ||
Notes to Consolidated Financial Statements ($000's)
1. Organization and Description of Business
Organization and Description of Business
Neighborly Company and Subsidiaries ("we", "our", "Neighborly" and the "Company") is a Delaware corporation and is the parent company of a number of franchisors and related supporting businesses operating in the United States (the "US") and internationally which include the following companies: Mr. Rooter, Rainbow International, Mr. Electric, Aire Serv, Mr. Appliance, Glass Doctor, Grounds Guys, Molly Maid, Mr. Handyman, Five Star Painting, Mosquito Joe, Real Property Management, Window Genie, HouseMaster, Dryer Vent Wizard, ShelfGenie, Precision Door Service, Restoration 1, Junk King, Lawn Pride, ZorWare, Drain Doctor, Locatec, Countrywide, Bright and Beautiful, Dream Doors, Greensleeves, and ProTradeNet.
In addition, the Company owns and operates non-franchisor entities as follows: Portland Glass, which offers auto, home, and business glass repair and replacement through company owned stores located in Maine, Vermont, and New Hampshire; Pimlico Plumbers, which offers repair and maintenance services, concentrated in central London; Plumb Enterprises, which offers full plumbing, drain and sewer cleaning services, excavation, and repairs in Colorado; and Lawn Pride, which offers lawn care and maintenance services through the application of fertilizer, as well as pest control, in Indiana.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Precision Door Service FDD, Precision Door Service is indeed associated with Neighborly Company and Subsidiaries. Specifically, Neighborly Company and Subsidiaries is identified as the parent company of several franchisors and related businesses, which includes Precision Door Service. This means that Neighborly Company oversees and manages Precision Door Service along with other franchise brands.
The FDD indicates that Neighborly Company owns and operates both franchisor and non-franchisor entities. This structure suggests that Precision Door Service benefits from being part of a larger network, potentially gaining access to shared resources, expertise, and established systems. For a prospective franchisee, this affiliation could provide a level of stability and support that might not be available with a standalone franchise.
Furthermore, the document mentions that Kohlberg Kravis and Roberts (KKR) acquired Neighborly in 2021, which could have implications for the strategic direction and financial backing of all its subsidiary brands, including Precision Door Service. This acquisition suggests that Precision Door Service, as part of the Neighborly network, has access to KKR's capital and resources, which could support growth and innovation.
In summary, the 2025 FDD clearly states that Precision Door Service is part of the Neighborly Company and Subsidiaries, indicating that it operates under the umbrella of a larger organization with potential benefits related to resources, support, and strategic direction.