What actions could a Pearce Bespoke franchisee take that would materially impair the goodwill associated with the brand?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee could engage in acts or conduct that, at Pearce Bespoke's sole discretion, materially impairs the goodwill associated with the brand name or any of the Marks or the Business System. This gives Pearce Bespoke significant latitude in determining what actions could be detrimental to their brand's reputation.

This clause is fairly broad, but it is not uncommon in franchise agreements. It protects the franchisor's brand by allowing them to terminate the agreement if the franchisee's actions damage the brand's reputation. For a prospective franchisee, this means understanding that their actions, even if not explicitly prohibited elsewhere in the agreement, could lead to termination if Pearce Bespoke deems them harmful to the brand's goodwill.

Additionally, the FDD states that franchisees receiving frequent and/or severe complaints from customers and/or employees concerning the Pearce Bespoke Franchise could also be grounds for termination. "Frequent" is defined as three or more different customer complaints with respect to the Pearce Bespoke Franchise in any twelve-month period, whether or not resolved. This highlights the importance of maintaining good customer service and employee relations to avoid damaging the brand's reputation and potentially losing the franchise.