What is the basis for including the affiliate-owned and franchised outlets in Pearce Bespoke's financial performance representation?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The basis for inclusion of this Financial Performance Representation is the affiliate-owned and franchised outlets represented below are similar to the franchise being offered under this Disclosure Document in terms of operations and product offerings. There are no material financial or operational characteristics of the represented affiliate-owned and franchised outlets that are reasonably anticipated to differ materially from future franchise outlet operations.
Written substantiation for the financial performance representation will be made available to the prospective franchisee upon request.
Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 35–36)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the financial performance representation includes data from both affiliate-owned and franchised outlets because these outlets are similar to the franchise being offered in terms of operations and product offerings. Pearce Bespoke asserts that there are no significant financial or operational differences expected between the represented outlets and future franchised operations. This inclusion aims to provide prospective franchisees with a relevant benchmark for potential financial performance.
Pearce Bespoke had twenty-six clothiers operating from January through December 2024, and only those operating for the full twelve months were included in the financial performance representation. The company generally recommends at least one clothier per territory, though some clothiers may operate in multiple territories for the same franchisee. This suggests that the financial data presented is based on a consistent operational period, providing a more reliable basis for comparison.
It is important for prospective franchisees to understand that while Pearce Bespoke believes the included data is representative, individual results may vary. The FDD explicitly states, "Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much." This disclaimer highlights the inherent risks and uncertainties in any business venture, and franchisees should not rely solely on this representation when making their investment decision. Pearce Bespoke also indicates that written substantiation for the financial performance representation will be made available to the prospective franchisee upon request, which would be a valuable resource for further investigation.