Is the Precision Door Service transfer fee 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 FDD, the transfer fee is generally 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.
However, the FDD states that the transfer fee is nonrefundable, meaning that under normal circumstances, if a franchisee decides to transfer their franchise, the fee paid to Precision Door Service will not be returned, regardless of whether the transfer is ultimately completed.
An exception exists where no transfer fee is required if an individual franchisee transfers the agreement to a legal entity wholly owned by them, established solely for ownership convenience, provided they become a guarantor of the business.