What are the consequences if a Pearce Bespoke franchisee fails to abide by Pearce Bespoke’s standards and requirements in operating the Franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, if a franchisee fails to abide by Pearce Bespoke’s standards and requirements in operating the franchise, it constitutes a curable default under the Franchise Agreement. This means Pearce Bespoke can terminate the Franchise Agreement if the franchisee does not correct the issue within a specified timeframe. The franchisee typically has 30 days to cure a violation of any material provision of the Franchise Agreement.
Specifically, the failure to meet Pearce Bespoke's standards is listed alongside other defaults such as non-payment of amounts owed or the expiration of the franchise's lease. All these defaults are subject to state law, which may provide additional regulations or protections for the franchisee.
This provision is important for prospective franchisees as it highlights the importance of adhering to Pearce Bespoke's operational standards. Failure to do so can lead to the termination of the franchise agreement, resulting in the loss of the business. Franchisees should ensure they fully understand and can comply with all standards and requirements outlined in the Franchise Agreement and related manuals.
It is also important to note that the termination and dispute resolution terms are subject to applicable state laws, which can modify or supersede the terms outlined in the Franchise Agreement. Therefore, prospective franchisees should consult with legal counsel to understand their rights and obligations under both the Franchise Agreement and relevant state laws.