Where in the Pearce Bespoke agreement is the total Development Fee specified?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of this Agreement, you must pay us a development fee in the amount specified in Exhibit A (the "Development Fee"), which is based on the initial franchise fee you must pay for each Mobile Franchise that you develop (the "Franchise Fee", which is also specified in Exhibit A). The Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise that you develop pursuant to this Agreement, including the Initial Franchise Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is non-refundable, even if you do not comply with the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the total Development Fee is specified in Exhibit A of the Area Development Agreement. Upon signing the Area Development Agreement, the franchisee is required to pay Pearce Bespoke a development fee, the amount of which is detailed in Exhibit A. This fee is calculated based on the initial franchise fee required for each Mobile Franchise that the franchisee intends to develop, with the Franchise Fee amount also specified in Exhibit A.
The Development Fee serves as a credit towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise developed under the Area Development Agreement, including the Initial Franchise Agreement. This means that the franchisee essentially pre-pays the franchise fee for each location as part of the development agreement.
It is important to note that the Development Fee is considered fully earned by Pearce Bespoke once the Area Development Agreement is signed by both parties. This fee is non-refundable, regardless of whether the franchisee fulfills the Development Schedule outlined in the agreement. Therefore, prospective Pearce Bespoke franchisees should carefully review Exhibit A and the Development Schedule to fully understand the financial commitment and development obligations before signing the Area Development Agreement.