factual

What is the citation for the California Franchise Investment Law that governs Pearce Bespoke franchises?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
    1. OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
    1. Item 3 is amended to add:

Neither Franchisor nor any person described in Item 2 of the Disclosure Document is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C. 8.78(a) et seq. suspending or expelling such persons from membership in such association or exchange.

4. Item 17 is amended to state:

  • (a) The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. § 101 et seq.).
  • (b) The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
  • (c) The franchise agreement contains a liquidated damages clause. Under California Civil Code section 1671, certain liquidated damages clauses are unenforceable.
  • (d) The Franchise Agreement requires application of the laws of [State]. This provision may not be enforceable under California law.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document.

Additionally, the FDD states that Pearce Bespoke's website has not been reviewed or approved by the California Department of Financial Protection and Innovation. Any complaints about the website's content may be directed to the California Department of Financial Protection and Innovation.

Item 17 of the Pearce Bespoke Franchise Agreement is amended for California franchisees to state that the Franchise Agreement contains a covenant not to compete which extends beyond the termination of the franchise, which may not be enforceable under California law. The franchise agreement also contains a liquidated damages clause that may be unenforceable under California Civil Code section 1671. Finally, the Franchise Agreement requires application of the laws of a specific state, but this provision may also not be enforceable under California law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.