Precision Door Service Franchise

Financing Details

Precision Garage Door Service may finance a portion of the initial franchise fee for qualified prospective franchisees, although it has no obligation to do so. The financing amount is limited to less than 50% of the business's total financial support. Standard financing covers up to 70% of the initial franchise fee, with a possibility of up to 80% for franchisees meeting specific requirements. Interest rates range from 9% to 12% annually, based on the franchisee's credit score. Repayment terms generally range from up to 5 years for loans less than $45,000 to up to 9 years for loans greater than $150,000. Precision Garage Door Service requires a security interest in the franchise and all assets, along with a personal guarantee from the owners and potentially their spouses. The franchisor may sell or assign the promissory note to a third party. They may also finance a portion of the renewal fee at a 12% interest rate for qualified franchisees. Franchisees may also be referred to third-party lenders.

Litigation Summary

Precision Garage Door Service has had six disclosed litigation matters, primarily involving its predecessor. Two cases involved its predecessor, Precision Holdings of Brevard, Inc., against a franchisee, Charan Gohlwar and Tej, Inc. The first case, initiated in January 2019, alleged incurable breaches of the Phoenix franchise agreement, including violations of sales practices, customer complaint handling, and conduct standards. A settlement was reached, leading to the termination of the Phoenix and Tucson franchises, with the franchisees allowed to operate a different garage door repair business in those areas, and an agreement to sell other franchises. The second set of cases, initiated in December 2019 and January 2020, involved the same franchisee for violating in-term and post-term non-competition covenants of their Maryland, Dallas, and Fort Worth franchise agreements and the prior settlement agreement. A confidential settlement was reached, enforcing post-term non-competition and requiring the franchisee to cease operations in Maryland and Texas. Two administrative orders involved affiliates of Precision Garage Door Service, but not the franchisor itself. In November 2017, a predecessor to Window Genie (an affiliate) and its president entered into a Consent Order with the California Commissioner of Business Oversight for failing to submit advertisements. They paid a penalty and completed remedial training. In November 2010, a predecessor to Molly Maid (an affiliate) entered a Consent Judgment with the Kansas District Attorney related to a franchisee's inability to document background checks and the sale of gift certificates. Molly Maid denied liability but paid a civil penalty and investigation costs. All these matters are concluded and none occurred within the last three years from the FDD issuance date of April 1, 2025.

Renewal Conditions

To renew, Precision Garage Door Service franchisees must provide written notice between 180 and 240 days before the agreement expires. They must be in good standing, meaning they are not in default of the current Franchise Agreement or any related agreement, have met all monetary and material obligations on time, and have received no more than 2 written notices of default during the term. Additionally, franchisees must not have failed to meet the Minimum Performance Standards for annual Gross Sales or customer satisfaction for any 2 calendar years or measurement periods. Franchisees and their guarantors must sign a general release and pay a renewal fee of $5,000. They must also complete current training requirements and sign the then-current version of the franchise agreement, which may have different terms, conditions, and fees.

Staffing Notes

Precision Garage Door Service requires franchisees to employ enough skilled and trained staff for efficient customer service. Franchisees are responsible for ensuring all employees and subcontractors pass necessary background checks before entering customer properties. The business must be directly supervised by the owner or a qualified manager who has successfully completed the franchise's training program. For Private Equity Owners, the business can be supervised by a managing principal who meets specific qualifications and training criteria, without needing an ownership interest. Payroll for three employees has been considered in initial operating fund estimates, not including the owner or a manager.