Under what conditions does the Precision Door Service Development Agreement expire?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD 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 |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 72–80)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the Development Agreement expires on the date that the PE Owner has opened and has in operation all of the Businesses outlined in the Development Schedule. This means that the agreement concludes once the franchisee fulfills their commitment to establish and operate the number of Precision Door Service locations specified in their development plan.
This expiration condition is standard in development agreements, as it ties the agreement's duration to the franchisee's performance in establishing the agreed-upon number of franchise units. It ensures that the franchisee actively develops the territory as intended. For a prospective franchisee, this highlights the importance of carefully considering the Development Schedule and ensuring they have the resources and capabilities to meet the agreed-upon development milestones.
It is important to note that while the Development Agreement expires upon completion of the Development Schedule, individual Franchise Agreements for each location will have their own terms and conditions regarding renewal, termination, and transfer, as detailed elsewhere in the FDD. The Development Agreement focuses on the initial rollout of multiple franchise units, while the Franchise Agreements govern the ongoing operation of each individual Precision Door Service business.