Can Pearce Bespoke accumulate funds over time in the Brand Fund?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
In implementing the Brand Fund, Franchisor has the right to spend in any fiscal year an amount greater or less than the aggregate contributions to the Fund in that year, and the Brand Fund may borrow from Franchisor or other lenders to cover Fund deficits. Franchisor can accumulate funds over time until such time as Franchisor determines in its sole discretion that sufficient funds are available to adequately conduct Fund activities as contemplated herein. Franchisor can cause the Fund to invest any surplus. Franchisor may, in its sole discretion, defer, waive and/or compromise claims for contributions to, and/or claims against or with respect to, the Fund and take legal or other action against any franchisee in default of its obligations and/or deny it access to programs, materials and/or other benefits funded by the Brand Fund. Franchisee acknowledges and agrees that Franchisor has no obligation to ensure that expenditures by the Brand Fund are or will be proportionate or equivalent to contributions to the Fund by franchisees operating in any geographic area, or that any franchisee will benefit directly, indirectly or in proportion to its contribution to the Fund. Any interest earned on Fund contributions will be remitted to the Brand Fund.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke can accumulate funds over time in its Brand Fund. The document states that Pearce Bespoke can accumulate funds until it determines, in its sole discretion, that there are sufficient funds available to adequately conduct fund activities. Pearce Bespoke also has the option to invest any surplus funds. Any interest earned on Brand Fund contributions will be remitted back into the Brand Fund.
This means that Pearce Bespoke is not obligated to spend all of the Brand Fund contributions each year and can save the money for future use. This provides Pearce Bespoke with flexibility in managing the Brand Fund and allows it to build up a reserve for larger marketing campaigns or other initiatives.
As a franchisee, it is important to understand that Pearce Bespoke has sole discretion over the Brand Fund. While the fund is intended for marketing and advertising purposes, Pearce Bespoke has the authority to decide how and when the funds are spent. Franchisees should consider this when evaluating the potential benefits of the Brand Fund and the overall franchise opportunity.