Under the Renewal Addendum, what agreement is Precision Door Service terminating with the franchisee?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| This RENEWAL ADDENDUM WITH TERMINATION OF FRANCHISE AGREEMENT AND |
|---|
| RELEASE (this "Addendum") is entered into by and between PRECISION DOOR SERVICE SPV LLC, |
| a Delaware limited liability company having a principal place of business at 2395 Washington Avenue, |
| Suite 5, Titusville, Florida 32780 ("Franchisor"), and, individually, having an address of |
| ("Franchisee"). |
| WHEREAS, Franchisor and Franchisee have entered into a franchise agreement, dated as of |
| pursuant to which Franchisor has granted Franchisee a right and obligation to establish and operate a |
| Precision Garage Door Service® franchise using the Marks and the System in and for the Territory (the |
| "Original Franchise Agreement"), [and the Amendment to the Original Franchise Agreement executed on |
| [2022] (the "Legacy Amendment")]; and |
Source: Item 22 — Contracts (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 FDD, the Renewal Addendum involves Precision Door Service terminating the existing franchise agreement with the franchisee. The "RENEWAL ADDENDUM WITH TERMINATION OF FRANCHISE AGREEMENT AND RELEASE" indicates that upon renewal, the original agreement between Precision Door Service and the franchisee is terminated. This suggests that the renewal process isn't simply an extension of the original agreement but rather a replacement of it.
This means that the terms and conditions of the new franchise agreement outlined in the Renewal Addendum will supersede those of the original agreement. The addendum also releases both parties from further obligations under the original franchise agreement, as indicated by the phrase "RELEASE" in the title.
For a prospective franchisee, this highlights the importance of carefully reviewing the Renewal Addendum. It is essential to understand how the terms of the renewed agreement differ from the original, as the franchisee will be bound by these new terms upon renewal. This includes any changes to fees, responsibilities, or operational requirements. Franchisees should seek legal counsel to fully understand the implications of terminating the original agreement and entering into the Renewal Addendum.