What action must a Pearce Bespoke franchisee take if a Confidentiality/Non-Competition Agreement is breached?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality/Non-Competition Agreement executed pursuant to this provision, and acknowledge Franchisor's right, to be exercised as Franchisor alone determines, to enforce the terms of any such executed Confidentiality/Non-competition Agreement. If the substantive provisions of the Confidentiality/Non-Competition Agreement have been breached by an individual employed, engaged, or otherwise serving the Pearce Bespoke Franchise who has not executed a Confidentiality/Non-Competition Agreement Franchisee must nevertheless vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law. Franchisee shall indemnify and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of Franchisee's failure to obtain executed Confidentiality/Non-Competition Agreements from employees, agents and third persons as required by this Section.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee must vigorously and vigilantly prosecute breaches of any Confidentiality/Non-Competition Agreement to the fullest extent permitted by law. This obligation extends to situations where an individual who hasn't signed such an agreement breaches the substantive provisions while employed or serving the Pearce Bespoke franchise.
Pearce Bespoke also retains the right to enforce these agreements independently, as it alone determines. Furthermore, the franchisee is obligated to indemnify and hold Pearce Bespoke harmless from any liabilities, losses, attorney's fees, or damages that Pearce Bespoke may incur due to the franchisee's failure to obtain signed Confidentiality/Non-Competition Agreements from employees, agents, and third parties as required.
This requirement places a significant responsibility on the franchisee to actively monitor and enforce these agreements. Failure to do so could result in legal action and financial liability for the franchisee. Prospective franchisees should understand the importance of these agreements and the potential consequences of failing to enforce them.