What condition regarding Pearce Bespoke's financial condition triggers the requirement for a surety bond in Illinois?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 7. | Based upon Franchisor's financial condition, the Illinois Office of the Attorney General |
|---|---|
| has required a Surety Bond be executed and on file with them in the amount of the initial (and | |
| development) fee multiplied by the number of franchises to be sold in Illinois. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Illinois Office of the Attorney General requires a surety bond due to Pearce Bespoke's financial condition. This bond must be executed and on file with the Attorney General.
The amount of the surety bond is determined by multiplying the initial franchise fee (which may include a development fee) by the number of Pearce Bespoke franchises to be sold in Illinois. This requirement is based on the franchisor's financial standing, indicating that Illinois seeks to protect franchisees in the event Pearce Bespoke is unable to fulfill its obligations.
For a prospective franchisee, this means that Pearce Bespoke's financial condition has raised concerns for Illinois regulators, leading to the surety bond requirement. It is essential for potential franchisees to understand the implications of this requirement and to assess Pearce Bespoke's financial stability before investing in a franchise, and to inquire about the specific details of the surety bond and what protections it offers.