Under what conditions can
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ted agreements. You should read these provisions in the agreements in EXHIBIT M-2 to this disclosure document.**
| Provision | Section in Development Agreement ("DA") (unless otherwise specified | Summary | |
|---|---|---|---|
| a. | Term of the franchise | Section 4 | DA expires on a date upon which PE Owner has opened and has in operation all of the Businesses set forth in the Development Schedule. |
| b. | Renewal or extension of the term | None | None |
| c. | Requirements for you to renew or extend | None | None |
| d. | Termination by you | None | Not Applicable |
| e. | Termination by us without cause | None | Not Applicable |
| f. | Termination by us with cause | Section 6 | We may terminate if you default under the DA or any Franchise Agreement. |
| Provision | Section in Development Agreement ("DA") (unless otherwise specified | Summary | |
| ---- | ----------------------------------------------------------- | --------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| g. | "Cause" defined - defaults which can be cured | Section 6 | 120 days to cure a development schedule default; 30 days to satisfy a final judgment, to dismiss a suit to foreclose any lien or mortgage against the premises or any equipment of the Business or to remedy other defaults that are curable. |
| h. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 72–80)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, the Development Agreement (DA) expires when the PE Owner has opened and operates all businesses as outlined in the Development Schedule, as detailed in Section 4 of the DA.
The FDD outlines specific conditions under which Precision Door Service can terminate the Development Agreement with cause. These include defaults under the DA or any Franchise Agreement. If the default is curable, the PE Owner has 120 days to address a development schedule default or 30 days to satisfy a final judgment, dismiss a suit to foreclose a lien or mortgage against the business premises or equipment, or remedy other curable defaults, as stated in Section 6 of the DA.
However, certain defaults cannot be cured. These include events such as bankruptcy or insolvency, execution against the PE Owner’s business or property, or the sale of real or personal property after levy, also outlined in Section 6. These instances would lead to immediate termination by Precision Door Service.
Prospective franchisees should carefully review Section 4 and Section 6 of the Development Agreement in Exhibit M-2 of the FDD to fully understand the conditions for termination and the implications of both curable and non-curable defaults. Understanding these conditions is crucial for maintaining a healthy franchise relationship and avoiding potential termination.