What is considered 'abandonment' of a Pearce Bespoke franchise, and what are the consequences?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be in default, and Franchisor may, at its option, terminate this Agreement, as provided herein, if:
- (8) Franchisee voluntarily or otherwise "abandons" (as defined below) the franchised business or fails to operate the business for a period of seven (7) consecutive days without Franchisor's prior written approval.
The term "abandon" means Franchisee's failure to operate the Pearce Bespoke Franchise during regular business hours for a period of ten (10) consecutive days without Franchisor's prior written consent unless such failure is due to an act of God, war, strikes, or riots;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document (FDD), abandonment occurs if a franchisee fails to operate their Pearce Bespoke franchise during regular business hours for ten consecutive days without prior written consent from Pearce Bespoke. However, this does not apply if the failure to operate is due to an act of God, war, strikes, or riots.
According to the FDD, if a franchisee abandons the franchised business, Pearce Bespoke has the option to terminate the Franchise Agreement.
This clause is important for prospective franchisees as it highlights the necessity of consistent operation and communication with the franchisor. Failing to maintain regular business hours without approval, even due to unforeseen circumstances not explicitly covered, could lead to a termination of the franchise agreement. Franchisees should ensure they have robust contingency plans and maintain open communication with Pearce Bespoke to avoid any potential disputes over what constitutes an acceptable reason for temporary closure.