Precision Door Service Logo

Precision Door Service

Precision Door Service SPV LLC
https://www.precisiondoor.net
1-321-225-3500
2395 Washington Avenue, Suite 5, Titusville, Florida 32780

Initial Investment Range

$164,285 to $382,794

Franchise Fee

$76,250 to $173,750

As a franchisee you will perform garage door repair, service and installation and other related services and sell related products pursuant to certain standards and specifications.

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Precision Door Service April 1, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
3
5

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The franchisor, PRECISION DOOR SERVICE SPV LLC (Precision SPV LLC), is part of a complex structure owned by private equity firm KKR and involved in a securitization transaction. While the parent's audited financials in Exhibit C do not show instability, this structure means decisions may prioritize investor returns over system health. The franchisor itself is a recently formed special purpose vehicle, relying on its parent and affiliates for support and guarantees, which introduces operational and financial dependency risks.

Potential Mitigations

  • Your accountant should review the consolidated financial statements, including all footnotes, to assess the overall financial health of the parent entity that guarantees performance.
  • Discuss the implications of the private equity ownership and securitization structure on long-term strategy and support with your franchise attorney.
  • A business advisor can help you research the track record of the parent private equity firm with other franchise systems.
Citations: Item 21, Exhibit C

High Franchisee Turnover

High Risk

Explanation

Item 20 shows a high number of franchise transfers, with 19 in 2024 alone (a 16% rate based on the start-of-year count). This is a potential indicator of franchisee dissatisfaction or lack of profitability. Furthermore, Item 19 explicitly excludes data from these 19 transferred units. High turnover, even if classified as transfers rather than terminations, presents a significant risk about the health and sustainability of franchises within the system, suggesting some may be changing hands under distress.

Potential Mitigations

  • You should contact a significant number of former franchisees listed in Exhibit F to understand their reasons for leaving the system.
  • A franchise attorney can help you formulate specific questions for former franchisees regarding profitability and the circumstances of their exit.
  • Your accountant should analyze the transfer rates over the past three years as a percentage of total outlets to gauge system stability.
Citations: Item 19, Item 20

Rapid System Growth

Medium Risk

Explanation

Item 20 data shows steady franchise growth, with 14 net new outlets in 2024. While growth can be positive, it must be supported by a corresponding expansion of the franchisor's support infrastructure. Given the complex management structure where an affiliate provides all support, you should verify that the support systems are robust enough to handle this expansion without diluting the quality of service provided to each franchisee.

Potential Mitigations

  • Engaging a business advisor to help you question the franchisor about their specific plans for scaling support infrastructure is recommended.
  • It is crucial to ask a broad range of existing franchisees, both new and established, about the current quality and responsiveness of franchisor support.
  • Your accountant can assist in reviewing the parent company's financial statements in Item 21 to assess if resources are being allocated to support this growth.
Citations: Item 20

New/Unproven Franchise System

Low Risk

Explanation

This specific risk was not identified in the FDD package. The Precision Garage Door Service brand has been franchising since 1999, so it is a mature and established system. Assessing whether a franchise concept is new or unproven is important because emerging systems carry higher risks, such as having an unverified business model, underdeveloped support systems, and minimal brand recognition, which can impact your potential for success.

Potential Mitigations

  • When evaluating any franchise, your business advisor can help you research the franchisor's history and the maturity of the business concept.
  • It is wise to ask your attorney to review the franchisor's operational history as described in Item 1 and the system growth tables in Item 20.
  • For any franchise system, an accountant can help analyze the financial statements in Item 21 for signs of stability and a proven financial track record.
Citations: Item 1, Item 20

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The garage door repair industry represents a consistent service need rather than a fleeting trend. However, when considering any franchise, it is crucial to assess whether the business model is based on a sustainable consumer need or a short-term fad. Investing in a fad business can be risky, as your long-term contractual obligations may outlast the market's interest, potentially leading to business failure.

Potential Mitigations

  • A business advisor can help you conduct independent market research to evaluate the long-term consumer demand for any franchise's products or services.
  • You should analyze the franchisor's plans for innovation and adaptation to stay relevant in a changing market.
  • Assessing the business model's resilience to economic shifts and its viability beyond current trends is a prudent step to take with a financial advisor.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

Item 2 indicates that several key executives, including the CEO and Chief Marketing Officer, are relatively new to their roles, having started in late 2024. While they may have extensive external experience, their recent arrival could signal a shift in strategy or a period of adjustment within the parent organization's leadership. This may affect the direction and support you receive, adding an element of uncertainty to the franchise relationship.

Potential Mitigations

  • It is prudent to research the background and track record of the new management team members, which a business advisor can assist with.
  • During your due diligence calls with existing franchisees, you should ask about their perceptions of the new leadership and any changes in system direction or support.
  • Your franchise attorney can help you understand any new strategic initiatives mentioned by management in the FDD.
Citations: Item 2

Private Equity Ownership

High Risk

Explanation

Item 1 discloses that the franchisor system is ultimately controlled by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR), a major private equity firm. This ownership structure may create a focus on maximizing financial returns over a specific investment horizon. This could potentially lead to decisions, such as increasing fees or selling the franchise system, that prioritize investor profits over the long-term health of individual franchisees. The complex securitization structure further serves this model.

Potential Mitigations

  • A business advisor can help you research the private equity firm's reputation and history with other franchise brands in its portfolio.
  • It is important to discuss with existing franchisees any changes they have experienced in support, fees, or system focus since the PE acquisition.
  • Your franchise attorney should review the assignment clauses in the Franchise Agreement to understand your rights if the system is sold.
Citations: Item 1, Item 21, Exhibit C

Non-Disclosure of Parent Company

Low Risk

Explanation

This specific risk was not identified in the FDD package. The franchisor properly discloses its parent companies in Item 1 and provides audited financial statements for the guarantor parent, Neighborly Assetco LLC, in Exhibit C. Failure to disclose a parent company or its financials when required can obscure the true financial backing and stability of a franchise system, hiding significant risks from a prospective franchisee.

Potential Mitigations

  • An attorney should always verify the corporate structure disclosed in Item 1 to ensure all relevant parent and affiliate entities are identified.
  • If a parent company provides a guarantee for the franchisor's performance, it is crucial that your accountant reviews that parent's financial statements.
  • When a franchisor is a new or thinly capitalized entity, confirming the financial strength of a guaranteeing parent with an accountant is a key due diligence step.
Citations: Item 1, Item 21, Exhibit D

Predecessor History Issues

Low Risk

Explanation

Item 1 discloses that the current franchisor, Precision SPV LLC, acquired the system from its predecessor in 2021. Item 3 discloses litigation that was concluded by the predecessor against a franchisee. While the information appears to be disclosed as required, it is important to recognize that you are joining a system with a history under different ownership, and some of the operational track record and legal history belongs to that predecessor entity.

Potential Mitigations

  • Your attorney should carefully review the history of the predecessor as disclosed in Items 1, 3, and 4.
  • Speaking with long-term franchisees who operated under the predecessor can provide valuable insight into the system's evolution and any inherited issues.
  • A business advisor can assist in researching the predecessor's public reputation and track record, if possible.
Citations: Item 1, Item 3

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 does not disclose a pattern of franchisee-initiated litigation against the franchisor alleging fraud, misrepresentation, or other similar claims. A history of such lawsuits can be a major red flag, potentially indicating systemic issues with the franchisor's sales process, the viability of the business model, or the franchisor-franchisee relationship itself.

Potential Mitigations

  • It is always prudent for a franchise attorney to review Item 3 for any litigation history, paying close attention to lawsuits brought by franchisees.
  • A business advisor can help conduct online searches for news articles or franchisee discussions about any disclosed litigation for additional context.
  • Questioning the franchisor and current franchisees about any disclosed litigation is a critical part of due diligence.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
8
1
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
6
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
6
7
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
6
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
6
7
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.