Under what conditions can I engage in a business similar to a Precision Door Service franchise?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ings to seek the entry of protective orders or other appropriate relief. Nothing in this Agreement shall be construed to interfere with a party's obligations to comply with lawful court orders; however, no disclosure of Confidential Information by a party pursuant thereto shall be deemed to place the Confidential Information in the public domain or to relieve the party from the future performance of all its confidentiality obligations under this Agreement, absent express orders of the court to the contrary.
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- Covenant Not to Compete. Except as otherwise approved in writing by Franchisor, you may not, directly or indirectly, through, on behalf of, or in conjunction with, any other person, partnership, or legal entity, own, maintain, operate, or engage or participate in, inure benefit to, or have any financial interest, either as an officer, agent, employee, principal, partner, director, shareholder or any other individual or representative capacity, in any corporation, partnership or other legal entity that engages in any business that is the same as or similar to the Franchise, or is otherwise in competition with the business of Franchisor or Franchisor's franchisees, that engages in the distribution of similar products, services and/or equipment and that is located (a) anywhere, while the Franchise Agreement is in effect or (b) (i) within the territory specified on the Data Sheet to the Franchise Agreement, (ii) within a 35-mile radius of the outer boundary of such territory, or (iii) inside the territory of another Precision Garage Door Service® business, in each case during a period of two (2) years commencing with the earlier of the termination of the Franchise Agreement or the date on which you cease to be associated with Franchisee (or the individual who is the principal of a legal entity identified as Franchisee) whether because of a termination of an employment arrangement or marriage or otherwise, which period shall be extended by any period of noncompliance. You further agree that upon Franchisor's request you shall make his/her personal and business records available for inspection by Franchisor to determine your compliance with this provision.
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- Customer Non-Solicitation Covenant.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Precision Door Service Franchise Disclosure Document, franchisees are restricted from engaging in competitive businesses during the term of the agreement and for a specified period afterward. Specifically, a franchisee cannot own, maintain, operate, or participate in any business that is the same as or similar to the Precision Door Service franchise. This restriction applies while the Franchise Agreement is in effect.
Following the termination of the Franchise Agreement or the cessation of association with the franchisee, a similar restriction applies for two years. During this two-year period, the franchisee is prohibited from engaging in a competitive business within the territory specified in the Data Sheet, within a 35-mile radius of the outer boundary of that territory, or inside the territory of another Precision Door Service business. The non-compete period can be extended if the franchisee breaches the non-compete covenants or if Precision Door Service seeks to enforce the agreement.
However, these restrictions do not apply if Precision Door Service provides written approval allowing the franchisee to engage in a competitive business. Furthermore, the FDD specifies that Precision Door Service can request access to a franchisee's personal and business records to ensure compliance with these non-compete provisions. These covenants are designed to protect Precision Door Service's legitimate business interests and system standards.
In addition to the non-compete covenant, during the term of the Franchise Agreement and for one year thereafter, franchisees are prohibited from diverting or attempting to divert any business or customer of the Business or any other Precision Door Service Business away from the System without prior written consent from Precision Door Service.