Can the Pearce Bespoke Brand Fund borrow money to cover deficits?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Brand Fund may borrow money to cover deficits. Specifically, Pearce Bespoke, as the Franchisor, has the right to spend more than the aggregate contributions to the fund in any given fiscal year. To cover these deficits, the Brand Fund is permitted to borrow from Pearce Bespoke or other lenders. This provides Pearce Bespoke with flexibility in managing the Brand Fund and ensuring that marketing and advertising efforts can continue even if current contributions are insufficient.

This ability to borrow funds allows Pearce Bespoke to maintain consistent marketing efforts, which can benefit franchisees by sustaining brand awareness and attracting customers. However, it also means that Pearce Bespoke has significant control over the Brand Fund, including the discretion to determine when and how much to borrow. Franchisees should be aware that Pearce Bespoke is not obligated to ensure that expenditures from the Brand Fund are proportionate to contributions from franchisees in any specific geographic area.

Prospective Pearce Bespoke franchisees should consider the implications of this arrangement, including the potential for the Brand Fund to incur debt and the lack of guarantee that marketing expenditures will directly benefit their specific location. It is important to understand how Pearce Bespoke manages the Brand Fund and what criteria are used to allocate resources for marketing and advertising initiatives. Franchisees may want to inquire about the historical performance of the Brand Fund and the extent to which it has relied on borrowing to cover deficits.