From where will the Brand Fund Fee be withheld from a Pearce Bespoke franchisee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to Franchisee's cooperative and local advertising obligations described in Section 6(A) and 6(B) above, Franchisee will pay Franchisor two percent (2%) of weekly Gross Sales. Franchisor reserves the right to increase the Brand Fund Fee up to three percent (3%) of Gross Sales upon thirty (30) days' notice. Franchisor will withhold this amount from the Franchisee Share, as detailed in Section 5(C).
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Brand Fund Fee, which is initially 2% of weekly Gross Sales, will be withheld from the Franchisee Share. Pearce Bespoke retains the right to increase this fee to 3% of Gross Sales with a 30-day notice.
This means that a portion of the franchisee's earnings will be automatically deducted to contribute to the Brand Fund, which Pearce Bespoke manages. The Brand Fund is used for various marketing and advertising activities, including national campaigns, online presence, and promotional materials.
It is important for prospective franchisees to understand that this deduction directly impacts their weekly revenue. While the Brand Fund aims to benefit all franchisees through increased brand awareness and customer acquisition, Pearce Bespoke has sole discretion over how the funds are spent and is not required to allocate any specific amount to the franchisee's local territory.