What is the amount of the surety bond required for Pearce Bespoke franchises in Illinois?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 7. | Based upon Franchisor's financial condition, the Illinois Office of the Attorney General |
|---|---|
| has required a Surety Bond be executed and on file with them in the amount of the initial (and | |
| development) fee multiplied by the number of franchises to be sold in Illinois. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Illinois Office of the Attorney General requires a surety bond due to the franchisor's financial condition. The amount of the surety bond is equivalent to the initial franchise fee (and development fee, if applicable) multiplied by the number of franchises to be sold in Illinois.
For a prospective Pearce Bespoke franchisee in Illinois, this means the actual surety bond amount will depend on the initial franchise fee and the number of franchises Pearce Bespoke plans to sell in the state. This bond serves as a financial guarantee to protect franchisees in Illinois, given Pearce Bespoke's financial status.
It is important for potential franchisees to understand the initial franchise fee and Pearce Bespoke's expansion plans in Illinois to determine the exact surety bond amount. This information can be obtained by reviewing Attachment A of the Franchise Agreement, which lists the initial franchise fee, and by directly inquiring with Pearce Bespoke about their sales projections for Illinois.