Under what conditions will Precision Door Service not modify the franchisee's territory?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement and provided that you are in compliance with the terms and conditions of this Agreement, we will not (i) modify the Territory without your written permission, subject to your compliance with the Minimum Performance Standards set forth in Section 5.R, or (ii) subject to our reservation of rights set forth in Section 2.C, establish either a company- or affiliate-owned or franchised PRECISION GARAGE DOOR SERVICE® Business geographically located within the Territory.
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, Precision Door Service will not modify a franchisee's territory if the franchisee is in compliance with the terms and conditions of the Franchise Agreement. However, this protection is contingent upon the franchisee's adherence to the Minimum Performance Standards outlined in Section 5.R of the agreement. This means that as long as the franchisee meets the required performance benchmarks and operates according to the agreement's stipulations, Precision Door Service is restricted from altering the franchisee's designated territory without their written consent.
This provision offers a degree of security for franchisees, ensuring that their defined operational area remains stable as long as they meet the franchisor's expectations. It prevents Precision Door Service from unilaterally shrinking or altering a franchisee's territory, which could negatively impact their business. The reference to Section 5.R highlights the importance of understanding and meeting the Minimum Performance Standards, as failure to do so could void this territorial protection.
However, Precision Door Service retains specific rights regarding activities within the territory. They reserve the right to engage in activities such as advertising, soliciting, contracting with, and servicing Key Accounts within the franchisee's territory, either directly or through authorized third parties, including other franchisees. Additionally, if a franchisee is unable or unwilling to service a customer within their territory, or if a customer specifically requests service from another franchisee or third party, Precision Door Service has the right to authorize another party to provide those services. These stipulations are important for prospective franchisees to consider, as they clarify the boundaries of their exclusive rights and the circumstances under which Precision Door Service can authorize others to operate within their territory.