How is the brand fund revenue calculated for a Pearce Bespoke franchise?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, brand fund revenue is calculated as 2% of the franchisee's gross revenue, as defined in the franchise agreement. Pearce Bespoke retains the right to charge an additional brand fund fee, but it cannot exceed 3% of the franchisee's gross revenue. These funds are used for advertising research, public relations campaigns, website development, online media programs, marketing materials (including television, radio, internet, and print advertising), and promotional materials for the franchisee's local market, as well as the implementation of advertising and marketing campaigns.

The brand fund revenue is collected and recognized weekly, based on the previous week's sales. This means that franchisees will regularly contribute to the brand fund based on their ongoing sales performance. The funds are specifically earmarked for marketing and advertising efforts aimed at promoting the Pearce Bespoke brand and supporting franchisees' local marketing initiatives.

For a prospective Pearce Bespoke franchisee, this means allocating a portion of their weekly gross revenue to the brand fund. While the standard rate is 2%, it's important to note that Pearce Bespoke could increase this to 3%, impacting the franchisee's profit margin. Understanding how these funds are used and the potential return on investment in terms of increased brand awareness and customer acquisition is crucial. Franchisees should also inquire about the brand fund's governance and transparency to ensure the funds are being used effectively to benefit the entire franchise system.