What agreement does a transferee-franchisee need to enter into with Pearce Bespoke?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, a transferee-franchisee (the person or entity buying an existing franchise) must enter into a written agreement with Pearce Bespoke. This agreement, in a form satisfactory to Pearce Bespoke, requires the transferee to assume and agree to fulfill all of the previous franchisee's obligations and covenants under the original Franchise Agreement for the remainder of its term.

Alternatively, Pearce Bespoke has the option to require the transferee-franchisee to execute the franchisor's then-current standard form of franchise agreement. This new agreement may not include any further renewal rights for the franchisee. However, it might specify different royalty rates and advertising contributions than the original agreement. Additionally, the Franchised Territory granted to the transferee may be altered under this new agreement.

This stipulation ensures that Pearce Bespoke maintains control over its franchise system, even when a franchise changes hands. By requiring a new agreement, Pearce Bespoke can update terms, ensure compliance with current standards, and protect its brand. Prospective franchisees should carefully consider these transfer conditions, as they could significantly impact the terms of their franchise if they later decide to sell.