Can Pearce Bespoke communicate directly with a potential transferee-franchisee during the transfer process?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
isfaction that he/she meets Franchisor's managerial, financial, and business standards for new franchisees, possesses a good business reputation and credit rating, and has the aptitude and ability to conduct the franchised business. Franchisee understands that Franchisor may communicate directly with the transferee-franchisee during the transfer process to respond to inquiries, as well as to ensure that the transferee-franchisee meets Franchisor's qualifications;
-
- While Franchisor does not determine the purchase price, Franchisor may determine that the purchase price and payment terms will adversely affect the transferee-franchisee's operation of the Pearce Bespoke Franchise;
-
- If Franchisee finances any part of the purchase price, Franchisee agrees that all of the transferee franchisee's obligations under any promissory notes, agreements, or security interests reserved in the Pearce Bespoke Franchise are subordinate to the transfereefranchisee's obligations to pay Royalty Fees or any other amounts due to Franchisor under the Franchise Agreement;
-
- The transferee-franchisee successfully completes Franchisor's training program; and Franchisee pays Franchisor a transfer fee equal to the greater of (i) Ten Thousand Dollars ($10,000.00), or (ii) twenty five percent (2
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke can communicate directly with a potential transferee-franchisee during the transfer process. This communication is permitted to address inquiries and ensure the transferee-franchisee meets Pearce Bespoke's qualifications.
This direct communication allows Pearce Bespoke to maintain its standards and ensure that any new franchisee taking over an existing location is well-suited to operate the business. It also allows the potential new franchisee to get direct answers from the franchisor.
However, Pearce Bespoke does not determine the purchase price between the existing franchisee and the transferee. Pearce Bespoke retains the right to assess whether the agreed-upon purchase price and payment terms could negatively impact the transferee-franchisee's ability to successfully operate the Pearce Bespoke franchise. This is to protect the brand and the new franchisee from unsustainable financial burdens.
Additionally, the transferee-franchisee must successfully complete Pearce Bespoke's training program. The franchisee must pay a transfer fee to Pearce Bespoke equal to the greater of $10,000 or 25% of the then-current Initial Franchise Fee. No transfer fee is payable for transfers to immediate family members (i.e.: spouse or children).