What was the total amount of distributions for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
fees of $47,126 and $44,075 for the years ending December 31, 2024 and 2023, respectively.
Costs of products and services as well as advertising and promotion fund expenses are reimbursed by the Company to the Manager.
Excess cash collections after distributions to the Issuer for quarterly interest and scheduled princ
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, distributions were $265,744 for the year ended December 31, 2023. These distributions represent excess cash collections after accounting for quarterly interest, scheduled principal payments, expense reimbursements to the Manager, and management fee payments.
For a prospective franchisee, this indicates the amount of cash flow Precision Door Service distributes to its Manager after covering its financial obligations and expenses. It's important to understand how these distributions are determined and what factors might influence their size in future years. The FDD also mentions that the Manager receives fees for services provided to Securitization Entities, which are senior to debt service, indicating that the Manager is compensated before distributions are made.
It is important to note that these distributions are subject to certain conditions and restrictions. The Series 2021-1 Senior Notes, the Series 2022-1 Senior Notes, the Series 2023-1 Senior Notes, the Series 2021-1 Class A-1 Notes, the Series 2022-1 Class A-1 Notes, and the Series 2023-1 Class A-1 Notes must be paid prior to any residual distributions to the Manager. Additionally, the Securitization Transaction requires maintenance of minimum debt-service coverage ratio levels and compliance with maximum leverage ratio levels for additional incurrence of indebtedness and scheduled amortization requirements.