What is the consequence if a Pearce Bespoke franchisee fails to meet the Minimum Royalty Payment?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are required to make certain minimum weekly royalty payments to retain their franchised territory. The FDD states that franchisees are required to make certain minimum weekly royalty payments to retain the Franchised Territory under the Franchise Agreement. The specific consequences for failing to meet these minimum royalty payments are not detailed in the provided excerpts.

While the excerpt confirms the existence of a "Minimum Royalty Payment(s)" requirement to retain the territory, it does not specify what actions Pearce Bespoke may take if a franchisee fails to meet this obligation. It is common in franchising for failure to meet financial obligations, including minimum royalties, to trigger default provisions in the franchise agreement, potentially leading to termination of the franchise.

A prospective Pearce Bespoke franchisee should carefully review the full franchise agreement to understand the exact ramifications of not meeting the Minimum Royalty Payment(s). They should also ask Pearce Bespoke to provide specific examples of actions taken against franchisees who have previously failed to meet these minimums. Understanding these consequences is crucial for assessing the financial risks associated with the franchise.