Under what condition will Precision Door Service not provide financing for a franchise?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligation to provide you any financing, but we may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. Our decision to finance the initial franchise fee will be based, in part, on your credit-worthiness, the collateral you have available to secure the financing and our then-current financing policies. We do not provide any financing in any transaction in which brokers are involved.
We limit the amount that we will finance -- currently to an amount less than 50% of the total equity, debt and other financial support of your Business (collectively, "obligations"). You must make a written representation to us, in a form we specify, confirming the dollar amount of your obligations. The representation must remain true through execution of your franchise agreement and we may elect not to approve a transfer, including a transfer to a corporation or other entity wholly owned by you, if you do not either maintain the same investment in your Business or pay any loans payable to us and our Affiliates in full. Subject to the obligation limit, our standard financing is up to 70% of your initial franchise fee, and we may agree, in our sole discretion, to finance up to 80% of your initial franchise fee if you meet certain requirements.
You must qualify to purchase a franchise, meet our credit standards and be otherwise eligible for financing to qualify for the following interest rates. We currently charge an interest rate based on your credit score as follows:
Source: Item 10 — Financing (FDD pages 48–50)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, Precision Door Service has no obligation to provide financing to franchisees. However, they may choose to finance a portion of the initial franchise fee for qualified prospective franchisees. One instance where Precision Door Service will not provide financing is in any transaction involving brokers.
Precision Door Service's decision to finance the initial franchise fee is based on factors such as the prospective franchisee's credit-worthiness, the availability of collateral to secure the financing, and Precision Door Service's current financing policies. The amount financed is limited to less than 50% of the total equity, debt, and other financial support of the franchisee's business. Franchisees must also provide a written representation confirming the dollar amount of their obligations, which must remain true through the execution of the franchise agreement.
Subject to the obligation limit, Precision Door Service's standard financing is up to 70% of the initial franchise fee, but they may agree to finance up to 80% of the initial franchise fee if certain requirements are met. To qualify for financing and the associated interest rates, franchisees must meet Precision Door Service's credit standards and be otherwise eligible for financing.