Are Pearce Bespoke's Brand Fund Fees audited?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
h we may increase up to a maximum of 3% of Gross Sales per week. Pearce Bespoke administers the use of Brand Fund Fees collected from franchisees. Not all Pearce Bespoke franchisees will benefit directly or on a pro-rata basis from the Brand Fund's expenditures. We may contribute to the Brand Fund in our sole discretion and be reimbursed later by the Brand Fund. Pearce Bespoke does not prepare a financial statement as to the collection and use of Brand Fund Fees, nor are the Brand Fund Fees audited. Pearce Bespoke will, however, provide you (at your request) an accounting of the most recently completed fiscal year. Pearce Bespoke is not obligated to spend any amount of the Brand Fund Fee on advertising in the area or territory where you are located. Pearce Bespoke will carry over for future use Brand Fund Fees not spent in any fiscal year. While we do not
2025 FDD 22
anticipate that any part of the Brand Fund will be used for advertising or public relations that are principally a solicitation for the sale of additional franchises, we reserve the right to do so in the future and to include a notation in any advertisement indicating that franchises are available.
You may develop advertising and marketing materials for your own use, at your own cost, if you follow the Business System standards and specifications, as outlined in the Manuals.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 21–27)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Brand Fund Fees are not audited. While Pearce Bespoke administers the use of Brand Fund Fees collected from franchisees, it does not prepare a financial statement regarding the collection and use of these fees. However, Pearce Bespoke will provide a franchisee (at their request) with an accounting of the most recently completed fiscal year.
This means that prospective Pearce Bespoke franchisees will not receive audited financial statements related to the Brand Fund. Instead, they can request an accounting of the Brand Fund's activity for the most recent fiscal year. It's important to note that this accounting is not an audited financial statement, which provides a higher level of assurance regarding the accuracy and reliability of the information.
In the 2024 fiscal year, Pearce Bespoke collected $19,054.12 in Brand Fund Payments. No expenditures from the Brand Fund occurred during that year. This information gives potential franchisees some insight into the fund's activity, even though it is not audited. Franchisees should consider the implications of the Brand Fund not being audited and the level of transparency they desire when making their investment decision.