Precision Door Service Franchise in 2024: Costs, Fee & FDD
Explore the investment potential of a Precision Door Service franchise, a leader in the garage door industry. With over 100 locations nationwide, the franchise offers strong growth, comprehensive support, and impressive revenue opportunities. Discover how to become part of this established brand!
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Precision Door Service, founded as a family business in the late 1980s, began as a small, informal partnership but quickly evolved into a national powerhouse in the garage door industry. Officially incorporated in 1999 in Arizona, the company soon relocated its headquarters to Titusville, Florida, under the umbrella of Precision Holdings of Brevard, Inc. What began as a local service with a dream of becoming America’s best garage door company has blossomed into a nationwide franchise network known for its customer service and reliability.
At its core, Precision Door Service specializes in the installation, repair, and maintenance of garage doors and openers. This includes everything from broken springs to safety inspections, and they take pride in offering a 24/7 emergency repair service. With homeowners and property managers as their primary clientele, they also offer ancillary services such as door tune-ups and preventive maintenance packages to ensure long-term performance. Their dedication to safety, quality, and customer satisfaction makes them a go-to brand for residential and commercial clients alike.
Today, Precision Door Service operates over 100 locations across the U.S., demonstrating its impressive growth and ongoing national expansion. Each location serves thousands of customers annually, contributing to the company’s reputation as a trusted leader in the garage door industry. Their commitment to excellence is evident in the daily operations of each franchise, servicing both metropolitan and suburban markets across the country.
Precision Door Service provides a robust franchise support system, which includes comprehensive training for new owners and technicians, marketing assistance, and ongoing business support. Their training programs focus not only on the technical aspects of the business but also on customer service, business management, and local market growth. This franchise is ideal for those looking for a solid, service-based business with a proven model and nationwide recognition.
Precision Door Service Franchise Insights
- Precision Door Service has over 100 franchise locations spread across the U.S., with each location serving thousands of homeowners annually, contributing to their nationwide reputation for reliability.
- The company operates in a recession-resistant industry, as garage door repair and replacement are essential services needed by both homeowners and property managers.
- Precision Door Service’s 24/7 emergency repair service is a standout feature, giving franchisees the opportunity to tap into an around-the-clock revenue stream.
Precision Door Service Franchise Key indicators
Growth YOY (%)
7%
vs industry 4%
Total U.S. Franchised Units
118
3-Year Failure Rate
1%
vs industry 13%
Sales-to-Investment ratio
21.2:1
How much does it cost to open a Precision Door Service franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Precision Door Service franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Precision Door Service franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Precision Door Service below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $67,500 | $135,000 |
| Office Lease | $1,500 | $5,000 |
| Office Build-Out | $0 | $4,000 |
| Telephone Number Charges | $0 | $500 |
| Software System Enrollment Fee | $1,250 | $1,250 |
| Deposits & Other Prepaid Expenses | $200 | $500 |
| Tools | $400 | $1,600 |
| Training & Travel, Lodging and Food Expenses | $2,000 | $4,500 |
| Furniture & Fixtures | $1,000 | $4,000 |
| Office Equipment | $1,500 | $4,000 |
| Signage | $300 | $4,000 |
| Opening Parts & Electronics Inventory | $15,000 | $25,000 |
| Office Supplies | $300 | $800 |
| Vehicle(s) | $1,200 | $2,400 |
| Insurance | $5,000 | $20,000 |
| Uniforms | $200 | $300 |
| Professional Fees, Licenses & Trade Memberships | $500 | $5,000 |
| Website Development | $2,500 | $10,000 |
| Advertising & Promotional and Local Marketing | $15,000 | $30,000 |
| Additional Funds for First 3 Months of Operation | $30,000 | $60,000 |
| Totals | $145,350 | $317,850 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Precision Door Service franchise or a similar home service franchise, you’ll need to ensure you have sufficient capital and financial resources to support the initial investment. Below are the typical requirements for a franchise in this industry, based on estimates and available data:
- Total Investment Estimate The total investment required for Precision Door Service ranges from approximately $145,000 to $318,000, covering costs such as equipment, initial marketing, office setup, and working capital. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisees typically need $50,000 to $100,000 in liquid assets (cash or easily accessible funds) to cover initial operating expenses, inventory, and unforeseen costs during the startup phase.
- Net Worth Requirement The required net worth to open a similar franchise is estimated to be $250,000 to $500,000, ensuring that you have the financial stability to manage the franchise over time and handle additional operational needs.
How much does a Precision Door Service franchise owner make?
Calculating the salary of a Precision Door Service franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Precision Door Service franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Precision Door Service Revenue & Gross Sales
Precision Door Service has shown impressive revenue performance in recent years, with a median gross sales figure of $4,918,135. This high figure reflects the franchise’s strong demand in the home services industry and its ability to capture a significant market share. Many franchisees benefit from consistent revenue streams, driven by the essential nature of garage door repair and installation services.
Which key factors impact the average revenue performance of Precision Door Service franchisees?
Several factors likely contribute to the strong performance of U.S. franchisee median gross sales for Precision Door Service. First, the garage door industry is essential and largely recession-resistant, as homeowners and property managers regularly require repairs, replacements, and maintenance for safety and functionality. The brand’s strong reputation for quality and customer service also plays a role, attracting repeat and referral business. Additionally, the franchise’s 24/7 emergency service option provides an edge in meeting urgent customer needs, further driving revenue. Precision’s comprehensive training and support programs ensure that franchisees are well-equipped to handle both the operational and service aspects of the business, leading to high customer satisfaction and robust sales.
Precision Door Service Franchise Operational Costs
When opening a Precision Door Service franchise, it’s important to factor in several key operational costs that will be part of running the business on a day-to-day basis. These costs will ensure the smooth operation and quality of service that customers expect. Here are the primary ongoing operational expenses to consider:
- Technician Salaries Payroll for service technicians is one of the largest operational expenses, as they are the backbone of your business.
- Equipment and Vehicle Maintenance Maintaining a fleet of service vehicles and the tools used for repairs and installations will require consistent investment.
- Inventory and Parts Keeping a steady supply of garage door parts, springs, openers, and other components is crucial for delivering timely service.
- Marketing and Advertising Local advertising campaigns, SEO, and digital marketing efforts to attract and retain customers will be a recurring cost.
By accounting for these operational costs, you can better plan your budget and ensure long-term profitability for your franchise.
Precision Door Service Franchise Fees
When opening a Precision Door Service franchise, understanding the various fees that will contribute to your overall cost structure is essential. These fees cover key aspects of operating under the Precision brand, from marketing to licensing, ensuring the franchise remains competitive and well-supported. Here’s a breakdown of some of the key fees you should anticipate:
- License Fee Ranging between 4% to 6% of gross sales, this fee is applied to the revenue you generate, allowing you to use the Precision Door Service brand, systems, and tools. Keep in mind that there are also minimum license fees that may apply regardless of sales volume, ensuring a base payment structure.
- MAP Fee (Marketing, Advertising, Promotion) To support national marketing efforts, you’ll contribute 2% of gross sales to the MAP fund. This fee helps fuel digital campaigns and brand visibility, driving customer acquisition and retention.
- Additional Fees Precision Door Service may apply other fees related to training programs, technology updates, and equipment provided by the franchisor.
These fees are designed to support both your individual franchise and the overall Precision Door Service network, providing you with the resources and tools needed for continued growth and success.
Precision Door Service Franchise Earnings
The earnings of a Precision Door Service franchise owner can vary based on several factors such as location, sales volume, operational efficiency, and cost management. However, for owner-operators, the potential for profitability is substantial. Based on recent data, the median gross sales for a Precision Door Service franchise are approximately $4,918,135. For owner-operators, the estimated earnings are around $738,000, reflecting a 15% operating profit margin.
Active, hands-on management by the franchise owner can significantly enhance profitability, as personal involvement often leads to greater operational efficiency and cost control. These figures illustrate the strong potential for earnings in a well-managed Precision Door Service franchise, particularly for those who are committed to playing an active role in the day-to-day operations of the business.
How to Open a Precision Door Service Franchise
Becoming a Precision Door Service franchisee involves a structured process designed to ensure you’re fully prepared to operate and succeed in the business. From your initial inquiry to opening day, Precision Door Service provides support at every step. Here’s an overview of the process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After reviewing the information, you’ll fill out a formal application to determine if you meet the financial and business qualifications required to become a franchisee.
- Discovery Day You’ll be invited to a Discovery Day at Precision’s headquarters, where you’ll meet the leadership team, learn more about the business model, and discuss the next steps.
- Franchise Agreement and Financing Once approved, you’ll sign the franchise agreement. If financing is needed, Precision can provide guidance on funding options and connect you with their preferred lenders.
- Training Program Before launching your business, you’ll attend an extensive training program that covers technical, operational, and customer service skills, preparing you to run your location smoothly.
- Location Setup and Grand Opening Precision will assist with setting up your service territory, marketing your opening, and providing ongoing support as you officially begin operations.
Pros & Cons
Pros
Established Brand Recognition: Precision Door Service has built a strong reputation and brand identity in the garage door industry, which can help attract customers from the start.
Essential Industry: Garage door repair and installation is a recession-resistant service, with ongoing demand from homeowners and property managers.
Strong Revenue Potential: With median gross sales around $4 million, the franchise offers high earning potential, especially for owner-operators.
Flexible Business Model: Precision offers a scalable business model that allows you to expand your service area and increase revenue streams over time.
Cons
Operational Complexity: Managing a team of technicians and ensuring vehicle and equipment maintenance can add layers of operational complexity.
Hands-On Management: Success often requires a hands-on approach, which may demand a significant time commitment in the early stages.
Competitive Market: The garage door service industry can be competitive, with many local businesses and franchises vying for market share.
