factual

What additional fees are Pearce Bespoke franchisees responsible for besides the monthly Technology Fee?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

TEM 6 OTHER FEES**

Type of Fee Amount Due Date Remarks
meals, and wages, if applicable.
Annual Certification Training $199 per session Yearly All active clothiers will be required to attend our annual certification training (the “Annual Certification Training”), which may be held online or in person at a location that we designate. We anticipate the cost of recertification will be approximately $199 and will be held monthly.
Approval of Supplier Fee $500 plus cost of examination and approval of a supplier requested by Franchisee. Prior to examination You will purchase only such types, models or brands of items, furniture, equipment, signs, and supplies that We approve for Pearce Bespoke as meeting its specifications and standards, including specifications and standards for quality, design, warranties, appearance, function, and performance.
Operational Standards Violation Fee $250 to $1,000 per occurrence As incurred Payable to us.
Liquidated Damages – Violation of Confidentiality or Non-Competition Covenants $100,000, plus our attorneys’ fees Per Occurrence Payable to us if you violate the confidentiality and/or non- competition covenants in the Franchise Agreement
Type of Fee Amount Due Date Remarks
------------------------------------- -------------------------------------------------- ---------------------------------------- --------------------------------------------------------------------------------------------
Contribution implementation we reserve the right to implement
one in the future, implemented by
Pearce Bespoke or the franchisees.
Local Marketing Minimum 5% of your Gross Minimum amount must be See Note 5 below. See Note 6 below
Expenses Sales spent during each calendar
year. We reserve the right to increase to a
maximum of 6% upon 30 days'
written notice
Transfer Fee Whichever is greater: Before completion of Subject to state law
(i) transfer
$10,000
or
(ii)
25% of
the then current franchise We will not charge Transfer Fee for
fee transfers to immediate family.
Audit Expenses Cost and expenses related As invoiced after Payable only if understatement is
to audit inspection greater than 2% of Gross Sales
or
audit
Renewal Fee Whichever is greater: 30 days before renewal of See Item 17(b). If you fail to timely
(i) Franchise Agreement meet any of the renewal conditions
$5,000,
or
(ii)
25% of
the then current franchise within the applicable timeframes, we
fee
may choose, in our
sole discretion and
without any obligation to do so, to
permit you
to renew, but you will be
required to pay a
renewal
administration charge of $500.
Technology Fee The fee is currently $25 Due at the same time as See Note 8
per Royalty Fees
week,
but
is
subject to
increases not to exceed We reserve the right to change the
10% annually. Technology Fee upon 60 days'
notice to you.
On a weekly basis, we will calculate
the Gross Sales, Net Sales, and
Credit Card Sales (defined below)
generated from the operation of your
Franchise
and pay you by EFT,
ACH, direct deposit, or by similar
means, the Net Sales generated from
the operation of your
Franchise
during
the previous calendar week
minus the amount you owe Us or our
affiliatesfor
the
Technology
Fee.
Point-Of-Sale Currently Monthly This is a pass-through expense. We
$385.
We
(POS) System Subscription Fee reserve the right to increase the cost of the manage the POS system from a central account which allows us to
POS System Subscription get the best pricing for Pearce
Fee up to our actual Bespoke franchisees. On a monthly
costs. basis we will withhold this
amount
from
one
of
your
Insurance Generally, between Upon insurance weekly payments. Payable to Pearce Bespoke if you fail
$1,000 - $2,000 but it company request to pay insurance premium and
will Pearce Bespoke pays it for you.
vary
under
certain
circumstances
Interest Lesser of: (i) 18% per year, When due Payable if Royalty Fee or other
Expenses or (ii) maximum amounts due Pearce Bespoke are
rate allowed by law not timely paid.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are responsible for several fees in addition to the Technology Fee. These include an Annual Certification Training fee of $199 per session, an Approval of Supplier Fee of $500 plus the cost of examination and approval, and an Operational Standards Violation Fee ranging from $250 to $1,000 per occurrence. Franchisees may also incur Liquidated Damages of $100,000 plus attorney's fees for violating confidentiality or non-competition covenants.

Additional fees include Local Marketing Expenses, which require a minimum spend of 5% of Gross Sales annually, with Pearce Bespoke reserving the right to increase this to a maximum of 6% with 30 days' written notice. A Transfer Fee is also applicable, set at the greater of $10,000 or 25% of the current franchise fee, subject to state law, though transfers to immediate family are exempt. Furthermore, franchisees may be responsible for Audit Expenses if an audit reveals an understatement of Gross Sales exceeding 2%. A Renewal Fee is set at the greater of $5,000 or 25% of the then-current franchise fee, payable 30 days before renewal, with a potential $500 administration charge for late compliance with renewal conditions.

Other ongoing fees include a Point-Of-Sale (POS) System Subscription Fee, currently at $385 monthly, which Pearce Bespoke may increase to cover actual costs. Franchisees must also maintain insurance, typically costing between $1,000 and $2,000 annually, though this can vary. Interest expenses may also be incurred at the lesser of 18% per year or the maximum rate allowed by law on overdue amounts. The Technology Fee is currently $25 per week but is subject to annual increases not exceeding 10%.

Prospective franchisees should carefully consider these additional fees, as they can significantly impact profitability. Understanding the conditions under which these fees are charged, such as operational violations or understatement of gross sales, is crucial for financial planning and operational compliance. The potential for increases in fees like the Local Marketing Expenses and POS System Subscription Fee also warrants consideration, as these can affect the overall cost of running the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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