According to the Pearce Bespoke Guaranty, how are capitalized terms defined?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
l Opening Date | | | Year 1 | $100 per week | | Year 2 | $150 per week | | Year 3 and beyond | $200 per week | | Year 4 + | 10% increase over previous year minimum |
C. Payment.
On a weekly basis, Franchisor will calculate the Gross Sales, Net Sales, and Credit Card Sales (as defined below) generated from the operation of Franchisees Pearce Bespoke Business. Certain fees are payable based upon Gross Sales or Credit Card Sales. On a weekly basis, Franchisor will provide a report to Franchisee, on the Gross Sales, Net Sales, and Credit Card Sales from Franchisee's Business. Franchisor will pay Franchisee, by EFT, ACH, direct deposit, or a similar means, the Net Sales generated from Franchisee's Business during the previous calendar week minus: (i) all fees, including Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee as detailed in and permitted by this Agreement; (ii) amounts owe by Franchisee to Franchisor or its affiliates for purchases of supplies permitted by and in accordance with the terms of this Agreement; and (iii) any other monetary obligation that Franchisee has to Franchisor or its affiliates, or any approved suppliers that Franchisor has been made aware of prior to the date that Franchisor would have to make a payment to on Franchisee's behalf, which is permitted by and in accordance with the terms of this Agreement (the "Franchisee Share").
D. Gross Sales.
The term "Gross Sales" means the total amount of all revenues Franchisee receives from the sale of goods and services, whether for cash or by check, credit card, or trade, in connection with the Pearce Bespoke Franchise, less customer refunds and returns. Gross Sales will include any sales permitted through the internet and wholesale transactions. Gross Sales will not include sales tax collected from customers and actually paid to appropriate tax authorities.
E. Net Sales.
The term "Net Sales" means Gross Sales minus the amount of any documented refunds, chargebacks provided to customers or retailers in good faith.
F. Credit Card Sales.
The term "Credit Card Sales" means all revenue transacted from or during the operation of your business including, but not limited to, service fees, product sales, business interruption insurance, and all amounts that you receive, whether from cash, check, EFT, ACH, wire transfer, credit and debit card, barter, exchange, trade credit, loyalty program points, gift card redemptions, or other credit transactions.
G.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, capitalized terms are defined within the context of the franchise agreement. Specifically, the term "Gross Sales" means the total revenue a franchisee receives from selling goods and services, whether paid in cash, check, credit card, or trade, related to the Pearce Bespoke franchise. This excludes sales tax collected from customers that is then paid to the appropriate tax authorities, but includes sales through the internet and wholesale transactions.
"Net Sales" is defined as Gross Sales minus documented refunds and chargebacks provided to customers or retailers in good faith. The document also defines "Credit Card Sales", though the specific definition is not provided in the excerpt.
Additionally, the "Franchised Territory" refers to the specific area outlined in Attachment A of the franchise agreement where the franchisee is authorized to operate their Pearce Bespoke franchise. The "Pearce Bespoke Franchise" itself is defined as the personal and non-exclusive license granted to the franchisee to operate under the Pearce Bespoke brand, using the Marks designated by the franchisor, and in accordance with the franchisor's Business System.