What is the alternative calculation for the Transfer Fee for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. | ||
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the transfer fee is calculated as whichever amount is greater between $10,000 and 25% of the then-current franchise fee. This fee is due before the completion of the transfer, and is subject to state law.
For a prospective Pearce Bespoke franchisee, this means that if they decide to sell their franchise, they will need to pay a transfer fee to Pearce Bespoke. The fee ensures that Pearce Bespoke is compensated for the administrative costs and efforts involved in approving the transfer and onboarding a new franchisee. The fee also helps to maintain the brand's standards by ensuring that only qualified and approved individuals become franchisees.
It is important to note that Pearce Bespoke will not charge a transfer fee for transfers to immediate family members. This provides some flexibility for franchisees who wish to pass their business on to their children or other close relatives. Franchisees should be aware of these transfer fee implications when considering selling their Pearce Bespoke franchise.