Under what conditions can Precision Door Service terminate the Development Agreement with cause?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| f. | Termination by us with cause | Section 6 | We may terminate if you default under the DA or any Franchise Agreement. | | 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. | "Cause" defined - defaults which cannot be cured | Section 6 | Bankruptcy or insolvency, execution against PE Owner's business or property; real or personal property is sold after levy. |
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 franchisor can terminate the Development Agreement with cause if the franchisee defaults under the Development Agreement or any Franchise Agreement.
The FDD outlines specific defaults that can be cured, providing the franchisee an opportunity to rectify the situation. These curable defaults include a 120-day period to address a development schedule default and 30 days to satisfy a final judgment. The franchisee also has 30 days 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.
However, certain defaults are considered incurable, leading to immediate termination. These include situations such as bankruptcy or insolvency, execution against the franchisee's business or property, or the sale of real or personal property after levy. These conditions represent severe financial distress or legal action that Precision Door Service deems detrimental to the franchise network, justifying immediate termination of the Development Agreement.