What is the term of the Precision Door Service Development Agreement?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement ("DA") (unless otherwise specified | Summary | |
|---|---|---|---|
| a. | Term of the franchise | Section 4 | DA expires on a date upon which PE Owner has opened and has in operation all of the Businesses set forth in the Development Schedule. |
| b. | Renewal or extension of the term | None | None |
| c. | Requirements for you to renew or extend | None | None |
| d. | Termination by you | None | Not Applicable |
| e. | Termination by us without cause | None | Not Applicable |
| f. | Termination by us with cause | Section 6 | We may terminate if you default under the DA or any Franchise Agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 72–80)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the term of the Development Agreement (DA) expires on the date the PE Owner has opened and has in operation all of the Businesses set forth in the Development Schedule, as detailed in Section 4 of the Development Agreement.
This means that the Development Agreement does not have a fixed term length (e.g., 5 years, 10 years). Instead, its duration is tied directly to the franchisee's fulfillment of their development obligations. A prospective Precision Door Service franchisee should carefully review the Development Schedule to understand the number of businesses they are required to open and the associated timelines, as this will determine the length of the Development Agreement.
Unlike a standard franchise agreement, which typically has a defined term and renewal options, the Precision Door Service Development Agreement concludes once the development obligations are met. There is no provision for renewal or extension of the term of the Development Agreement. This structure incentivizes franchisees to develop their territory according to the agreed-upon schedule.
It is important for potential franchisees to understand that failure to meet the development schedule could lead to termination of the agreement, as Precision Door Service may terminate the agreement if the franchisee defaults under the Development Agreement or any Franchise Agreement, as stated in Section 6. This highlights the importance of a realistic and achievable development plan.