Besides fees, what other amounts are deducted from the Net Sales paid to the Franchisee by Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
On a weekly basis, Franchisor will calculate the Gross Sales, Net Sales, and Credit Card Sales (as defined below) generated from the operation of Franchisees Pearce Bespoke Business. Certain fees are payable based upon Gross Sales or Credit Card Sales. On a weekly basis, Franchisor will provide a report to Franchisee, on the Gross Sales, Net Sales, and Credit Card Sales from Franchisee's Business. Franchisor will pay Franchisee, by EFT, ACH, direct deposit, or a similar means, the Net Sales generated from Franchisee's Business during the previous calendar week minus: (i) all fees, including Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee as detailed in and permitted by this Agreement; (ii) amounts owe by Franchisee to Franchisor or its affiliates for purchases of supplies permitted by and in accordance with the terms of this Agreement; and (iii) any other monetary obligation that Franchisee has to Franchisor or its affiliates, or any approved suppliers that Franchisor has been made aware of prior to the date that Franchisor would have to make a payment to on Franchisee's behalf, which is permitted by and in accordance with the terms of this Agreement (the "Franchisee Share").
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, in addition to fees, there are other potential deductions from the Net Sales paid to the franchisee.
Specifically, Pearce Bespoke may deduct (ii) amounts owed by the franchisee to Pearce Bespoke or its affiliates for purchases of supplies permitted by and in accordance with the terms of the Franchise Agreement. Pearce Bespoke can also deduct (iii) any other monetary obligation that the franchisee has to Pearce Bespoke or its affiliates, or any approved suppliers that Pearce Bespoke has been made aware of prior to the date that Pearce Bespoke would have to make a payment to on franchisee's behalf, which is permitted by and in accordance with the terms of the Franchise Agreement.
These deductions cover a broad range of potential financial obligations a franchisee might have to Pearce Bespoke or its associated entities, beyond just the standard franchise fees. This means a franchisee needs to be aware of all purchasing and payment terms within the agreement to fully understand their weekly Net Sales payout. It is important for a prospective franchisee to carefully review the agreement and clarify any potential financial obligations with Pearce Bespoke to avoid unexpected deductions from their Net Sales.