Who conducts the audit of a Pearce Bespoke franchise during the renewal process?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the audit of a Pearce Bespoke franchise during the renewal process is conducted either by Pearce Bespoke itself or by a party that Pearce Bespoke designates. This audit, at Pearce Bespoke's discretion, can include both a financial and an operational review. The purpose of the audit is to ensure the franchise is compliant with the brand's standards at the time of renewal.
Any deficiencies that the audit uncovers must be resolved before the current franchise term expires. The franchisee is responsible for covering the costs associated with the audit if deficiencies are found. These costs include not only the audit fees but also any expenses related to transportation, lodging, meals, and other related expenses incurred by Pearce Bespoke or its designee during the audit.
This requirement means that a prospective Pearce Bespoke franchisee needs to maintain compliance with all brand standards and operational procedures throughout the term of the franchise agreement. They should also be prepared to invest in necessary upgrades and modernizations to meet the current brand requirements at the time of renewal. Furthermore, they should be financially prepared to cover audit costs if any deficiencies are identified during the renewal process.