How do I review a garage door company’s customer maintenance contracts?
Read a full set of the maintenance contracts and build a list of customers, services promised, visit frequency, price and renewal. Check how many were actually serviced as promised and paid for. Then ask your lawyer whether the contracts can move to you.
Collect every maintenance agreement, including old ones that may still be honoured by habit. Make a list showing the customer, the type of door or opener, what is covered, how often visits are due, how the price is set and when the agreement renews. Gaps between the paper and what the company really does are common, so look for them.
Test delivery. Pick several customers and check that each visit was done on time, invoiced and paid. Ask what happens when a customer wants a repair outside the contract and who bears the cost of parts. Look for promises that are expensive to keep, such as same-day response, free replacement parts or unlimited call-outs.
Then ask about the future. Who are the commercial customers and who are the homeowners? How many cancel each year? Do any agreements contain consent rules for a change of owner? Your lawyer can read these clauses and explain them. A contract list that is easy to follow and consistently performed is a sign of a well-run company. Look at how repairs found during a maintenance visit are quoted and approved, as that is where much of the extra income arises.
Key takeaways
- Build a list of customers, coverage, visit schedule and renewal date.
- Test whether promised visits were done, billed and paid.
- Have your lawyer check whether the agreements can transfer to you.
- Check how repairs found during maintenance visits are quoted.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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