Under what circumstances is the Precision Door Service transfer fee reduced to $500?
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 standard transfer fee is $20,000. However, Precision Door Service offers a reduced transfer fee of $500 under a specific circumstance. This reduced fee applies when the franchise is transferred to an immediate family member, defined as a spouse or a child. It is important to note that, for the purpose of this transfer fee reduction, siblings are explicitly excluded from the definition of immediate family members.
This provision can be a significant benefit for franchisees who wish to pass their Precision Door Service business on to their children or spouse. The reduced transfer fee substantially lowers the financial barrier to keeping the franchise within the family. Without this provision, the $20,000 transfer fee could be a considerable obstacle for some families.
It is important for prospective franchisees to understand the specific definition of "immediate family member" as it applies to the transfer fee. If a franchisee intends to transfer the business to someone outside of this definition, such as a sibling, the full $20,000 transfer fee will apply. Franchisees should also confirm that all other transfer requirements are met, regardless of the reduced fee, to ensure a smooth transfer process.