Is the transfer fee for a Precision Door Service franchise refundable?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
unreasonably. You immediately must notify us of any proposed Transfer and must submit promptly to us the application for consent to Transfer. Any attempted Transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will provide us with the right to elect either to default and terminate this Agreement or to collect from you and the guarantors a Transfer fee equal to two times the Transfer fee provided for in Section 10.C as damages.
- C. Transfer Fee. You must pay to us a Transfer fee in the amount equal to $20,000. We will reduce the Transfer fee to $500 for a Transfer to an immediate family member (i
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, the transfer fee is nonrefundable. The standard transfer fee is $20,000, but it is reduced to $500 for transfers to an immediate family member, defined as a spouse or child. A sibling does not qualify as an immediate family member for the reduced fee.
Notably, a franchisee will not be required to pay a transfer fee if they are transferring the agreement to a newly formed legal entity wholly owned by them, established solely for the convenience of ownership and operation of the business. However, in this case, the franchisee must become a guarantor of the business.
This nonrefundable policy means that if a transfer is not completed for any reason, the franchisee will not receive the transfer fee back. This is a standard practice in franchising, as the franchisor incurs costs in reviewing and processing the transfer application regardless of the outcome. Prospective franchisees should carefully consider this policy and the conditions for transfer before initiating the transfer process.