Is compliance with Pearce Bespoke's brand standards a condition for renewal?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Term.
The term of this Agreement will be for ten (10) years commencing on the Effective Date, unless terminated sooner in accordance with the terms hereof.
B. Renewal.
Franchisee will have the right to renew its Pearce Bespoke franchise for the Franchised Territory for two (2) successive five (5) year terms, provided Franchisee meets the following conditions:
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- Franchisee has given Franchisor written notice at least one hundred eighty (180) days before the end of the term of this Agreement of its intention to renew; and
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- Franchisee has complied with all of the material provisions of this Agreement, including the payment of all monetary obligations owed by Franchisee to Franchisor and its affiliates and suppliers, and has complied with Franchisor's material operating and brand standards and procedures and meets all current brand standards during the term of the Franchise Agreement; and
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- Franchisee has at its expense made such reasonable capital expenditures necessary to replace and modernize the supplies, items, and custom equipment in Franchisee's business so that Franchisee's business reflects the then current requirements of a new Pearce Bespoke Franchise; and
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- At Franchisor's discretion, assist Franchisor or its designee with an audit of the Pearce Bespoke Franchise, which shall be conducted by Franchisor or its designee, including without limitation, a financial audit and an operational audit to determine their compliance with then current brand standards. Any deficiencies identified during the audit must be satisfied prior to the expiration of the then current term. If any audit reveals any deficiencies the costs incurred by Franchisor in connection with any such audit are payable upon demand by Franchisee prior to the expiration of the then existing term, including any audit costs, transportation, lodging, meals, and any other expenses incurred.
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- Franchisee has paid a Renewal Fee equal to the greater of (i) Five Thousand Dollars ($5,000.00), or (ii) twenty-five percent (25%) of the then-current franchise fee to Franchisor at least thirty (30) days before the expiration of the initial (and any renewal) term of this Agreement expires; and
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- Execute prior to the expiration of the then existing term the then-current Franchise Agreement, provided, however, that Franchisee will be required to p
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, compliance with the brand's standards and procedures is a condition for franchise renewal. Specifically, a franchisee can renew their Pearce Bespoke franchise for two successive five-year terms if they meet certain conditions.
One of these conditions is that the franchisee has complied with all material provisions of the Franchise Agreement. This includes adhering to Pearce Bespoke's material operating and brand standards and procedures, and meeting all current brand standards during the term of the Franchise Agreement. This means that throughout the existing franchise term, the franchisee must consistently follow the brand's guidelines for how the business is run and presented to the public.
Additionally, before the renewal can be finalized, Pearce Bespoke has the discretion to conduct an audit of the franchise to ensure compliance with current brand standards. The franchisee is responsible for covering the costs of this audit if any deficiencies are found. All identified deficiencies must be corrected before the current term expires to qualify for renewal. This reinforces the importance of maintaining brand standards throughout the franchise term, not just at the point of renewal.
In addition to brand standard compliance, the franchisee must also provide written notice of intent to renew 180 days before the end of the term, pay a renewal fee of $5,000 or 25% of the then-current franchise fee (whichever is greater), and execute the then-current Franchise Agreement. These stipulations, combined with the brand standards compliance, ensure that franchisees seeking renewal are fully committed to the Pearce Bespoke system and are up-to-date with the brand's requirements.