Does Pearce Bespoke allow franchisees to operate outside of their accepted location?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Franchise only at the accepted location and you may not relocate the Franchise without obtaining our prior written consent.
You may not advertise, market, solicit, sell, or service customers outside your Franchised Territory ("Non-Exclusive Customers"), unless you are solicited or have a prior verifiable relationship with the Non-Exclusive Customer. Even if you sell to a Non-Exclusive Customer, you must pay us or the incumbent franchise owner an encroachment fee of twenty percent (20%) of the Gross Sales attributed to the Non-Exclusive Customers sales outside of your Franchised Territory ("Encroachment Fee").
You may not use alternative channels of distribution, including the internet, catalog sales, telemarketing, or other direct marketing methods to make sales inside or outside your Franchised Territory unless specifically authorized by Pearce Bespoke.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are generally restricted from operating outside their designated territory. The FDD states that franchisees must operate the franchise only at the accepted location and may not relocate without prior written consent from Pearce Bespoke. This means a franchisee's physical operations are tied to their approved site.
However, Pearce Bespoke does allow franchisees to conduct business with customers outside their territory under specific conditions. Franchisees may engage with "Non-Exclusive Customers" if they are solicited or have a prior verifiable relationship. If a Pearce Bespoke franchisee sells to a Non-Exclusive Customer, they must pay an encroachment fee of twenty percent (20%) of the gross sales attributed to those sales outside of their Franchised Territory.
Pearce Bespoke also restricts the use of alternative distribution channels. Franchisees may not use methods like internet sales, catalogs, telemarketing, or other direct marketing to make sales inside or outside their Franchised Territory unless specifically authorized by Pearce Bespoke. This suggests that any expansion beyond the physical location and pre-existing customer relationships requires explicit approval from the franchisor and may not be guaranteed.